Moving 'ahead': new report confirms there are many bright sides to senior housing.

Long term care facilities and retirement centers in need of additional marketing firepower have a new weapon: an analysis of two recent studies indicates that seniors who live in age-qualified housing are happier than those who live in all-ages neighborhoods.

"Understanding Seniors Housing Demand, Choices and Behavior: Insights from the AHEAD and HRS Studies," analyzes data collected in the University of Michigan Health and Retirement Study (HRS) of more than 13,000 households--22,000 residents--with at least one occupant 50 years of age or older.

The study was prepared by Oxford, Miss.-based ProMatura Group LLC and released by Annapolis, Md.-headquartered National Investment Center for the Seniors Housing & Care Industries.

A companion study, "AHEAD (Asset and Health Dynamics Among the Oldest Old)," captured data from a subset of more than 6,000 households in the HRS study in which at least one occupant was age 70 or older.

Both studies compared the preferences and experiences of seniors who lived in age-qualified housing--such as an assisted living facility or continuing care retirement community--to those living in a traditional all-ages neighborhood, such as a regular suburban house or apartment.

Participants from the University of Michigan study are interviewed extensively every two years on topics including family structure, health and health insurance, employment status, personal income and housing. The most recent data, from interviews completed in 2000, indicates many areas for senior housing operators to consider when planning new communities and talking to potential customers. The study's main findings and suggestions include:

* Market-rate all-ages apartments are a major competitor for seniors, housing. The report notes that the number of seniors choosing to rent in a market-rate all-ages apartment community increases with age and is growing faster than any other group. "Most households who move from the home they own in an all-ages neighborhood move to a residence they rent in an all-ages neighborhood," according to the report.

The study cites two possible reasons: reluctance among some people to live in any form of seniors housing and lack of financial resources. "For the independent living sector of the seniors housing industry, perhaps this movement can be transformed into an opportunity for age-qualified market rate rentals without services, such as seniors' apartments," the study notes.

* Age-qualified residents are less depressed and lonely. Seniors who live in age-qualified housing generally report a better emotional health than those living in all-ages rental neighborhoods, even though the former group reports more physical limitations.

Also, those living in age-qualified housing report greater satisfaction with their healthcare. "While it is excellent to have such selling points affirmed by research findings," the report states, "the challenge for operators remains the familiar one of educating consumers about these benefits of seniors housing."

* All-ages housing seen as transitional housing if more care is needed. Seniors in all-ages housing--compared to residents in age-qualified housing--are much more likely to believe that they will have to move should they require substantial care. As well, those who live in market rate all-ages housing are more likely to believe that safety in their neighborhoods is poor or fair.

* Environmental design becomes an issue with age. According to the study, significant numbers of seniors age 50 and older suffer from limitations in abilities that affect their capacity to climb stairs, stoop or kneel, push large objects or carry something weighing more than 10 pounds. In order to address the increasing frailty of seniors, the study notes the importance of designing "an environment that accommodates differences in abilities and of including fitness programs to help people maintain or improve their strength and stamina."

* Few age-qualified senior residents work. One in five seniors or their spouses older than age 65 held a job while living in age-qualified housing that they own, but almost none of those living in age-qualified, market rate rentals with services worked. Among households less than age 65 who owned homes in an all-ages or age-qualified community, the figure jumps to more than 65 percent working, but again none of the age-qualified market rate rentals with services worked, according to the study.

* As people age, they use more assets than they bring in. The age-qualified market rate rental with no services group had the highest proportion of respondents who used assets to cover expenses, indicating that "this group specifically does not have the financial resources to move to age-qualified market rate rental with services."

But the fact that seniors in general use more assets than they bring in does not mean they cannot afford seniors housing. The study found that all seniors living in age-qualified ownership markets with services used up more assets than they added. "If people are house-rich and cash poor in a market area, as long as they can and will sell their home, then the market may support a retirement community," the report states.

* Migration is limited among both groups. One of the study's objectives was to track the number of households that moved from all-ages housing to age-qualified housing in the course of the decade. In both groups tracked--those aged 51 to 61 in 1992 and those aged 70-plus in 1993--the proportion of respondents living in seniors housing increased by 2 percent.

What remains unknown, according to the report, is the reason for the increase. Growing awareness and greater need for senior housing are possible causes, but "even without growing awareness or preference, however, this increase in penetration could be accounted for by increasing frailty and therefore need for supportive housing."

The report notes that in 2000, an estimated 1.9 million U.S. households age 50-plus lived in age-qualified housing, with the oldest respondents--those older than age 75--having the highest percentage of households in a retirement community or senior citizens' housing.

For more information on "Understanding Seniors Housing Demand, Choices and Behavior: Insights from the AHEAD and HRS Studies" or to order a copy of the report, call NIC at 410-267-0504.

LIVING IN AGE-QUALIFIED HOUSING

age of      percent of
residents   households

   50+         4.2
   55+         4.7
   65+         7.1
   75+         9.9

Source: AHEAD and HRS studies, National Investment Center for the
Seniors Housing & Care Industries

Note: Table taken from bar graph.