Why Building Senior-Friendly Homes And Senior-Friendly Home Conversions Could Be The Next Big Thing In Real Estate

Aging baby boomers increasingly choose to stay in their houses instead of moving into managed care facilities or nursing homes. It's an understandable impulse, but not one without potential complications. Senior citizens often require special accommodations to make their homes livable. That could create a boom in the real estate sector for developers and home remodelers who can create senior-friendly living spaces. 

Most people can attest to the inner peace of living in a familiar environment surrounded by loved ones. Perhaps that's why a recent article in Kiplinger Magazine noted that many senior citizens’ wish is to remain in their homes during their golden years. A growing body of research shows this could have potential health and psychological benefits.

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There may also be financial upside to seniors aging in place. A recent study on the cost of senior care by Genworth shows that the national average price for home care residences is $8,669/month for a shared room and $9,000/month for a private room. That's expensive enough, but it's just the average price. The price jumps to a mind-boggling $13,000 in Los Angeles. Higher-quality facilities can be even more expensive.

A significant portion of any monthly nursing home care invoice goes toward renting the room and has nothing to do with actual care. Eliminating that cost by keeping seniors in their homes can result in tremendous savings. Kiplinger reports that the cost of caring for seniors in their own homes ranges between $3,000 and $6,500/month. So, the senior gets to be healthier and happier while also saving on the cost of care.

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The only issue is that as seniors age, extensive renovations on the property may become necessary to make it senior-friendly. Ramps may need to be added to make entering and exiting the home easier. Bathrooms may need to be remodeled to accommodate wheelchair access. Building an add-on to the house could be necessary to accommodate a live-in caregiver.

Other potential major renovations include adding wheelchair lifts or converting downstairs dens into bedrooms. That's in addition to simple fixes like lowering countertops and light switches. Making a home senior-friendly will probably involve a combination of large and small fixes and that will cost money. However, that cost will go into upgrades or renovations to an existing house instead of rent to a nursing home. 

The renovations could make the home appreciate, whereas fees paid to a nursing home are just sunk costs. It may even be possible to finance the repairs by borrowing against equity in the house. That would spread the cost out and help seniors stretch their retirement dollars. 

Whichever builders and remodelers can establish themselves as leaders in this field will have a lucrative lane for the next several decades. Even buyers who haven't yet reached their golden years prefer permanent homes they don't have to move out of. That means developers have a new incentive to build houses designed to be senior-citizen-friendly. Keep your eyes peeled for investment opportunities in this sector.

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