Plante Moran Living Forward and Retirement Dynamics announced the results of its COVID-19 Sentiment Report, and the results are a mixed bag for the senior living industry. Surveying more than 23,000 independent living residents, prospects on waiting lists and staff, and receiving more than 5,000 responses, the partnership found out how sentiment has changed in regard to living and working at an independent living community, and how respondents thought the sector had dealt with the pandemic.
The good news is that a majority responded positively to each question. The bad news is that the margins do not bode well for an industry that is already struggling to raise its penetration rate, let alone maintain it.
Residents were asked if they felt safer living in a community versus being in their previous home, and 61% said they preferred the community. In addition, 77% of residents were “glad to be in a community during the pandemic,” and 86% were glad they made the decision to move to a community. A whopping 93% of residents felt their community took all precautions to keep them safe, which we found reassuring.
Even when in the community, however, residents still felt socially isolated during the shelter-in-place orders, 68% to be exact. Those orders will continue to change as the fall sets in, and even though communities have become better at figuring out how to keep residents socially engaged while socially distanced, it won’t be easy this winter.
As far as how the communities have handled the pandemic, only 54% of residents felt their communities created and communicated effective visitation policies with family and friends. They also gave communities low marks for alternative recreation, activities and food quality or variety. On the positive side, high marks were given for cleanliness, sanitation and communication or updates from management regarding COVID-19.
Focusing on the responses related to residents’ happiness living at an independent living community, we are most worried. Yes, almost all residents who participated in the survey said their community took all precautions to keep them safe, and a majority of respondents said they either felt safer or were “glad” to be in the community during the pandemic. But that leaves a significant minority that still have to be sold. And these were either current residents of an independent living community or those on a waiting list for one, so we imagine they were already “sold” on the concept.
What about seniors currently living outside of retirement communities who the sector still needs to target to fill their units? We know there are seniors who have felt isolated while living at home during the pandemic, and they may seek out a more social, safe experience at an independent living community. But if a majority of current IL residents say they felt isolated (68%) during the pandemic, that isn’t a great selling point. However, we believe it will be improved upon.
We aren’t trying to be a Debbie Downer or Chicken Little, especially considering a majority of respondents had positive things to say, but we think investors, owners, operators and lenders affiliated with the senior living industry need to be realistic with how long it will take for census to return to normal across the country, especially at the less needs-based communities, and how their residents are really feeling.
