CHICAGO, IL—With the overbuilding of senior housing and low occupancy levels, developers are now readjusting their expectations as they respond to sagging demand from older generations. There are ramifications for this in both the short and long term.

Short Term

First, US demographic trends going into 2020 indicate that senior housing occupancy levels still won't be strong because absorption of these units isn't happening fast enough.

"Seniors used to move into senior housing in their 70's and now they aren't moving until into their 80's. So developers need to be astute to that," says Laura Dietzel, partner and real estate senior analyst at RSM, an audit, tax and consulting services firm, tells GlobeSt.com. "Due to current technology which an adult child can use to monitor the day-to-day life of their elderly parents, developers certainly have a problem in the short term."

Long Term

In the long term, however, while technology can keep seniors in their homes longer, it is still a poor substitute for personal, human interaction. Developers and operators can create communities where seniors will go to belong, not only to stay safe or remain healthy.

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