SHHA: finding new solutions to deal with demographic shifts

Comparing notes and learning from other countries’ experiences is crucial because rapid demographic shifts are a global phenomenon, delegates heard at the ¨Global Horizons: unlocking the future of senior housing worldwide¨ webinar, organised by the Senior Housing and Healthcare Association (SHHA).

¨There has been a real acceleration in the ageing population and everywhere we see the same pattern of rising demand and low supply¨, said Scott L.Eckstein, Managing Director, Active Living International. ¨The need is great across the board.¨

Just to give a few examples, 10,000 Americans turn 65 every week, while in the European Union the senior population is expected to double by 2050. In Spain seniors are now 20% of the population, but that share is expected to reach 27% by 2035, while in Japan the percentage will be 30% by 2030. By 2040 China will have 400 million elderly citizens.

If the statistics make the demand side very clear, the numbers on the supply side are equally stark. The US will be 600,000 units short by 2030, as the demographic shift underway requires an extra 40,000 units a year. In the UK only 4% of housing stock is dedicated to senior living. The same pattern can be seen in European countries.

The demographic shift must be matched with a mindset shift on the part of developers and communities, said Janice Chia, Founder & Managing Director, Ageing Asia: ¨Every sector and industry must take ageing into account. What we need is age-friendly housing developments that are just living spaces, where people of all ages live together.¨

Developers are getting the message, she said, and people like intergenerational communities, but it can be a financial tussle, at least for a few years.

¨It always starts with pioneers, patient and visionary investors who take the plunge and are willing to be brave and wait¨, Chia said. ¨In a few years´ time these developments will be established and people will be willing to pay to live there.¨

Another solution is breaking down the artificial barriers between types of senior housing and offer flexibility instead.

¨In the last few years we have seen the silo mentality disappear and the ageing in place concept emerge¨, said Roberto Garcia, Principal, Life 3A. ¨The idea is to focus on wellness and create a continuum, providing additional support in-house when circumstances change, without the person or their partner having to move to a different facility. We need to change our mindset and cater for different needs.¨

The underlying assumption is that the more we live independently in a good facility, the longer we will live a healthy life. 

¨We have learnt that one size does not fit all¨, Garcia said. ¨We need to unlock the offer so that people can choose. It is all about creating a community that works.¨

The differences between geographies are less relevant than differences of location and lifestyle, he  said: ¨We did projects near a golf course in Sydney 20 years ago that are perfect for Marbella now. A senior community in central Madrid or Melbourne will have many similarities too: what makes the difference is not Australia or Spain, but urban versus non-urban resorts. Let us look at successful formulas that have been used in other countries, because all the challenges we face now have been dealt with in other markets before.¨