by Life plan communities, also known as continuing care retirement communities (CCRCs), provide senior housing along with healthcare and support services to senior citizens. These communities offer independent living residences as well as assisted living and skilled nursing facilities on the same campus. This allows residents to age in place without having to move to different facilities as their needs change. An increasing advantage of these communities is that they provide long term care arrangements through a single contractual agreement, offering financial security. Residents pay an entry fee along with monthly fees or service fees, allowing them access to different levels of care without additional costs down the line. This mitigates the financial and retirement planning challenges associated with rapidly increasing healthcare costs.
The global Life Plan Communities Market is estimated to be valued at US$ 94.99 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
One of the key trends in the life plan communities market is the increasing consumer preference for senior living arrangements that allow independent living along with access to care facilities. As health and mobility needs change with age, senior citizens are looking for housing options that offer aging in place and a supportive community environment. Additionally, the coronavirus pandemic highlighted the need for senior living facilities that can limit infection spread through isolated care units on the same campus. This is expected to further drive demand for life plan communities in the coming years.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the life plan communities market is moderate. Establishing new life plan communities requires high capital investments and regulatory compliances which act as a barrier for new players.
Bargaining power of buyers: The bargaining power of buyers is high in this market. Buyers have a variety of options to choose from in terms of amenities and pricing.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are numerous construction and service providers, establishing long-term relationships is important for community operators.
Threat of new substitutes: The threat of new substitutes is low. Alternate senior housing options cannot provide the comprehensive care and financial security promised by life plan communities.
Competitive rivalry: Competition in the market is high due to the presence of numerous national and regional players offering similar amenities and pricing structures.
Global Life Plan Communities Market Segmentation:
- By Type
- Continuing Care Retirement Communities (CCRCs)
- Assisted Living Facilities
- Independent Living Communities
- Skilled Nursing Facilities
- Others
- By Ownership Type
- For-profit
- Non-profit
- Government
- By Contract Type
- Extensive contracts
- Modified contracts
- Fee-for-service contracts
- Equity contracts
- Others
Key Takeaways:
The global Life Plan Communities Market Size is expected to witness high growth over the forecast period given the rising aging population. Regionally, North America is estimated to dominate the market followed by Europe. The large elderly population base along with early adoption of assisted living facilities will drive the regional markets.
Regional Analysis: North America is projected to hold the leading share in the life plan communities market through 2030. The United States, in particular, has a well-developed senior living industry and a high demand for upgraded housing options for seniors. Availability of suitable infrastructure as well as government initiatives are further supporting market growth.
Key Players: Key players operating in the life plan communities market are Erickson Living, ACTS Retirement Life Communities, Brookdale Senior Living, Life Care Services, Lutheran Senior Services, Presbyterian Senior Living, United Methodist Retirement Communities, Wesley Woods Senior Living, Benchmark Senior Living, Senior Lifestyle Corporation, Five Star Senior Living, Sunrise Senior Living, Silverado Senior Living, Maplewood Senior Living, Oakmont Senior Living, Leisure Care, Holiday Retirement, Capital Senior Living, Welltower, and HCP Inc. Erickson Living and Brookdale Senior Living are among the top senior housing operators in the US.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
