Assisted living booming on baby boomers
If there were enough supply, assisted living in Europe would be massive. But there isn’t, and it isn’t. but there are plenty of opportunities as our latest HBI Intelligence report, which covers the sector across seven countries, shows.
HBI Intelligence users can click here to see the report, which gives market size and growth rates and examines business models and reimbursements, or here to see profiles of the 50 largest operators in Europe. Click here to book a demo of HBI Intelligence if you are not already a subscriber.
Defining what we mean by the term is a first hurdle and one which also demonstrates just how culturally determined the concept is. It varies from glitzy retirement villages built by for-profits to utilitarian sheltered housing provided by an increasingly reluctant public sector.
The discrepancies in the size of the sector are eye-popping. There are only around 3,000-4,000 assisted living dwellings in Italy in total, yet 13% of all over-80s in Basel canton in Switzerland are in assisted living.
There is plenty of evidence of powerful growth. Mosaic Investments reckons the sector in France will grow at least 30% between 2021 and 2025 and possibly by as much as 50%. Certainly, it is in France that we are seeing the emergence of the most dynamic assisted living sector in Europe.
Assisted living has taken off in France and Switzerland – countries which operate a licence model for nursing home beds with severe limits put on nursing home expansion. Building assisted living facilities that offer nearly the same standards of care is one way around this.
But there are bigger reasons why this sector is set to soar. Underlying demand is high and set to grow as baby boomers age, nuclear families fracture and house prices soar.
And assisted living can also claim to be good for the elderly. Your degree of social contact correlates better with life expectancy in the elderly than diet, smoking or drinking. So those who use assisted living live longer, happier lives. In fact, the majority of retirement community dwellers are able to remain largely independent for the rest of their days and never have to make the move to a nursing home.
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