Top Trends for Senior Living in 2023

There’s no question 2023 will be a year of uncertainty and challenges for the senior living industry, but we also anticipate positive changes as disruptions continue. Our previous blog took a look back at some of the senior housing trends that shaped 2022, while also looking ahead to what’s on the horizon for the coming year. From lifestyle changes to evolving care paradigms and rising occupancy rates, hopes are high. 
Sherman & Roylance co-founder Shep Roylance had this to say about the coming year: "We are very optimistic about the continued upward trend in senior housing for 2023.  Even with increased interest rates, we do not believe they will have a negative effect on the senior housing market that has negatively affected other sectors of the housing market. We are anticipating 2023 to be one of Sherman & Roylance's best years to date."

Planning for the Future

The pandemic taught us a lot and had a major impact on seniors, their families, caregivers, and everyone in between. We not only saw technology start to play a more instrumental role within the industry, but it became clear that traditional housing models would no longer cut it. Furthermore, senior housing development teams have had to rethink processes to embrace green building practices, active adult communities, and experiential living models.
If you recall, Sherman & Roylance’s senior housing development expert, George Bingham, predicted dropping lumber prices and other factors would have a positive impact on new development communities in the second half of 2022, and we expect this to trickle over into the future. As the population in the U.S. continues to age, it’s important SNFs, assisted living operators, and all senior living providers position themselves to offer a higher level of care. 

Senior Living Trends To Watch For 

Economic uncertainty will continue to play a role in senior housing, the question is just how big a role that will be. For many facilities, workforce challenges and operational shortcomings are a top concern, while others are focused on breathing new life into housing models and implementing beneficial tech. 
Our co-founder, John Sherman, says, “the continued rise in the need for seniors, the creation of new care paradigms rooted in population health, and the vast need for housing & healthcare facilities for seniors will combine to create a super-trend in 2023 and beyond creating an amazing environment for senior housing and skilled nursing." 
Here’s a look at several of the most anticipated trends to keep an eye out for this year:
  • The jury is out on what kind of impact inflation, rising construction and material costs, and interest rates will have on senior living
  • How will government funding change the industry?
  • Labor woes will continue
  • Open and transparent communication will be key for operators, developers, providers, and investors. 
Questions about the current state of the market or thinking of selling a property? Don’t hesitate to reach out! And remember, our team will be attending the Spring NIC Conference in San Diego and we hope to see you there.