By 2027, most senior living residents will be Baby Boomers and there will be 72 million of them in the United States. The senior housing industry needs to bring about 28,000 new units online in 2017 just to meet current demands and another 67,000 new units to keep up with demand by 2017.
In just 10 years, the senior housing industry will have to build thousands more units per year with a dramatically smaller construction workforce. The industry has taken notice of the move to modular that Marriott Hotels made the past couple of years and sees modular as a viable answer to the problem.
Senior living providers and developers are creating 10-year plans to account for the coming challenge of needing more units. The modular housing industry looks to be a big part of it.
RELATED….Another Industry Begins Using Modular Construction
There are some technical challenges to building these units using modular construction though, the biggest being learning what the medical needs of a senior living unit are and how to install them prior to delivery to the jobsite.
And as I’ve mentioned many times, capacity will be a challenge that still seems to be the elephant in the room nobody wants to acknowledge.
Just looking at the next ten years we see the industry playing key roles in building hotels, apartment buildings, hospitals, affordable housing, senior living units and of course, single residential homes.
The need for modular construction because of the dwindling skilled labor pool could see a four-fold demand for our industry.
Today we simply aren’t prepared for what is about to come our way.
