The pandemic has seen a shift from living in nursing homes to living with family. Builders are jumping on that trend.
More builders are adding floor plans to new homes that provide for multi-generational living arrangements. According to the CEOs of Lennar, Toll Brothers and others, they’ve seen an increase of home buyers looking for models where they can accommodate older parents. In addition, Accessory Dwelling Units (ADU) are spreading rapidly. These are adjacent, sometimes permanent, additional living quarters that can be built to provide space for other family members.
Underlying this trend is a decrease in the numbers of older persons living in assisted living and nursing home facilities. According to the National Investment Center for Seniors Housing and Care, the occupancy rates have fallen 2.5% in each of the last two quarters, where no decreases had been seen before. While much of this is due to the pandemic, some believe that living with one’s family will be preferred to living in assisted living or nursing homes.
According the National Association of Realtors®, nearly 25% of all houses bought in the last nine months were priced above $500,000, up from only 14% in the prior year. Much of this is driven by the scarcity of low-priced, entry-level homes in almost every market in the country.
Once the pandemic eases and those at risk are vaccinated, we don’t see the trend away from nursing homes and assisted living facilities changing in the short term.