Vintage Home and Residential Care falls under several industry classifications within the Homes for the Elderly Sector. This sector comprises of establishments primarily engaged in providing residential and personal care services for (1) the elderly or other persons who are unable to fully care for themselves and/or (2) the elderly or other persons who do not desire to live independently. The three industry classifications that pertain to Vintage are:
– Community Care Facilities for the Elderly (corresponding NAICS code 623312);
– Continuing Care Retirement Communities (corresponding NAICS code 623311); and
– Nursing Care Facilities (corresponding NAICS code 623310).
In total, the assisted living industry brought in revenues of $36.8 billion in 2009.4
The demographic trends indicate that assisted living facilities have been growing and will continue to grow as an aging population, declining sizes of families, and demand for new and unique medical services and assistance are on the rise. The assisted living facility industry was hit by the economic recession, however, the industry still saw positive growth at 1% between 2008 and 2009. While the growth rate slowed significantly as compared to previous years, the positive growth demonstrates that this industry is somewhat recession proof as compared to most industries that experienced negative growth rates during the same period. Furthermore, the future of the assisted living facility industry looks bright as the senior population is expected to grow at 26% through 2040.
There are a few national level associations promoting business and operational excellence in assisted living communities while offering information at one place to the senior citizens. Some of these associations are:
- Assisted Living Federation of America
- Elder care
- National Center for Assisted Living
- American Association of Homes and Services for the Aging
- The Florida Assisted Living Association
- California Assisted Living Association
- National Investment Center for the Seniors Housing & Care Industry
The graph on the following page provides an overview of the major companies that operate within the assisted living industry:
INDUSTRY TRENDS & GROWTH6
About 1.5 million Americans live in assisted living facilities. That number is expected to double by 2030. According to the U.S. Census Bureau, the number of people in the United States between the ages of 65 and 84 will increase by almost 40% between 2010 and 2020.
As of 2006, retirement community residents were 69% female and 31% male, with the typical resident in an assisted living facility being an 85 year old female. People over 85 years old make up the largest percentage of people in assisted living facilities.
With Baby Boomers representing more than 70% of all of the financial assets in the United States, they are and will continue to be the main target market of this industry.
Many assisted living communities try to create a home like environment rather than giving an institutional feeling. With this in mind, amenities being offered in the future may be more upscale such as commercial kitchens, beauty salons, spas, indoor pools and pet friendly communities.