The world is facing unprecedented demographic change, with the increasingly ageing populations of major markets such as the US driving major new demand for related accommodation and healthcare support.
Increasingly, the care homes of the past are being replaced with more comfortable living complexes catering for the varying on-site healthcare needs of residents. New facilities are very different to traditional retirement homes – and often have beautiful rooms and grounds. What the industry is trying to do is destigmatise the idea of moving to one of these facilities and is now looking to create what is known as a continuum of care.
It is now possible to house independent living facilities and acute care facilities all in the same complex. What this does is creates an opportunity to bring people into these residences sooner – offering them a much better living experience and from a business perspective holding on to their custom for a longer period of time. In my view, we will see a tremendous amount of new demand for independent and senior housing facilities over the next few years.
James Lydotes, portfolio manager. Mellon – a BNY Mellon company