April 20, 2024
Life Plan Communities Market

Life Plan Communities Market Is Expected To Be Flourished By Increasing Demand For Independent And Assisted Living Options

Life plan communities, also known as continuing care retirement communities (CCRCs), offer senior living options ranging from independent living to skilled nursing care on the same campus. Residents are able to “age in place” by transitioning to higher levels of care as their needs change. These communities provide residents with access to amenities and services such as meals, housekeeping, transportation, wellness and activity programs. They often include independent living residences like apartments and cottages, as well as assisted living and nursing home facilities. With rising healthcare costs and longer life expectancies, many seniors are choosing life plan communities for the convenience and security of receiving all their care needs in one location.

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 Dynamics:

Increasing demand for independent and assisted living options is a key driver expected to flourish the life plan communities market over the forecast period. As adults age, they often experience declines in health and mobility that make independent living more challenging. Life plan communities provide options to “age in place” by transitioning to higher levels of care like assisted living or nursing home facilities located on the same campus. This helps reduce stress for seniors and their families by simplifying access to increasingly intensive care needs without disruption of having to move to new locations. The growing preference for independent and assisted living is evident in rising occupancy rates reported by major life plan community providers. Another driver is the financial benefits of life plan community contracts which often provide lifetime healthcare in exchange for an entrance fee and monthly fees. This protects residents from rising healthcare costs later in life.

Segment Analysis:

The global life plan communities market can be segmented based on Type (Senior living facilities, Continuing Care Retirement Communities (CCRC), and Assisted living facilities) and End User (Individuals and Corporate clients). The CCRCs segment dominates the market and is expected to witness high growth, accounting for over 40% market share in 2023. This is mainly due to an increasing preference among seniors for communities that offer multiple levels of care on a single campus including independent living, assisted living and nursing home care.

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

PEST Analysis:

Political: The growth of the market is supported by various government initiatives and healthcare reforms focused on senior care. For instance, the Affordable Care Act in the US expanded Medicaid coverage for seniors.
Economic: High disposable incomes of seniors, increasing healthcare spending, rising women workforce, and growing nuclear families are fueling demand for retirement communities.
Social: Greater life expectancy, declining family support systems, desire for active aging are driving demand for retirement facilities offering socialization and multiple care levels.
Technological: Integration of latest technologies like IoT, AI, remote patient monitoring solutions helps improving safety, healthcare delivery and operational efficiencies at life plan communities.

Key Takeaways:

The global Life Plan Communities Market Size is expected to witness high growth supported by an aging population globally.

Regionally, North America dominates the market currently accounting for over 40% share in 2023, led by the US. Factors such as advanced senior healthcare infrastructure, availability of funds for senior housing, and government initiatives are driving the North America market.

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 is currently the market leader in the CCRCs segment and is expanding service offerings through acquisitions and digital innovations.

*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it