Senior Housing Demand
Entrance Fee Independent Living
Typically, the entrance fee "buys-down" the monthly cost for services. Ideally, an older couple (or individual) sells their home at a price that allows them to make a "lateral" move to the continuing care setting with little or no out-of-pocket costs (assuming the entrance fee has to be set a level consistent with local home prices). The move then allows the couple (or individual) to spend less for the same monthly services offered in a typical independent living rental development.
Total Demand for Entrance Fee Housing
YOUR Primary Market Area
CURRENT INCOME |
Congregate/ Independent Rental Option (mostly one-person hlds.) |
Overlap |
Potential Independent Entrance Fee (mostly 2 person hlds.) |
Excludes overlap |
||
| @ 65% of income | @ 65% of income | |||||
| Units | Monthly Rent | Units | Units | Monthly Fee | Total Units | |
| $30,000+ | 226 | $1,625 | 45 | 230 | $1,625 | 411 |
| $35,000 + | 180 | $1,896 | 45 | 198 | $1,896 | 333 |
| $40,000 + | 147 | $2,167 | 45 | 171 | **$2,167 | 273 |
| $50,000 + | 106 | $2,708 | 35 | 132 | $2,708 | 203 |
| $60,000 + | 78 | **$3,250 | 25 | 96 | $3,250 | 149 |
** Essentially the same size unit.
Note: Demand estimates can be added across the table, but not down. Existing supply must be subtracted from these demand estimates to obtain the remaining un-served market.
