As advances in healthcare and medical sciences continue to evolve, Americans are living longer than ever before. However, that sparks the question of how one ensures their aging loved ones are safe, well-cared for and continue to live a fulfilling life.
Life plan communities provide essential care to seniors who struggle to care for themselves, and they have diversified their product offerings and residential options significantly. Yet most of the elderly population are hesitant to reside in such a facility, primarily citing high costs, further distancing themselves from family, and concerns about the effect on their mental/emotional health.
An emerging option—retirement communities connected to universities—promises mutual benefits for seniors and their families, universities, and senior living providers.
Mitigating the risks and leveraging the benefits of intergenerational living
The concept of intergenerational living arrangements is advancing based on the notion that seniors should not be isolated from younger generations. Multigenerational households are certainly not new. It was common for elderly Americans to live with their adult children throughout the 1800s and early 1900s. However, this living arrangement went through a dramatic change during the 1930s, as Americans valued independence more and the implementation of Social Security allowed older adults to afford their own homes. As a result of this shift, traditional family homes became smaller while also isolating older family members as housing became less affordable.
The concept of intergenerational living picked up speed during the Great Recession of 2007-2009 as housing costs rose faster than incomes and increases in unemployment lead to job security and home affordability concerns. Intergenerational living communities aid in today’s housing challenges, provide social and economic benefits, help reduce isolation and depression among older adults, and develop connections between multiple generations.
University-based retirement communities
One of the fastest growing forms of intergenerational living is the university-based retirement community (UBRC), with 100+ facilities near college campuses in 30+ states.¹ UBRCs not only provide enhanced amenities and services to the residents, they also allow the university and the provider to take advantage of certain financial and tax benefits. Typically, UBRCs are formed in one of three ways:²
A university builds and operates its own UBRC
A university provides or sells land to a third-party provider on preferred terms to build and/or operate the UBRC
A university will partner with an existing retirement community near the university’s campus
Benefits to the residents. These communities mix senior care with advanced educational opportunities. Residents can enroll in free classes, attend campus events, access state-of-the-art university recreational facilities, purchase sporting event tickets at reduced or student prices, and take advantage of the university’s dining and transportation services, all while living on or near a college campus. It increases resident involvement and creates an environment where knowledge and experience can be exchanged between generations. Many UBRCs offer the full continuum of care and an array of housing options. These communities are designed with walkability in mind and often have diverse populations.
Benefits to the universities and senior living providers. Because of the proximity and affiliation with the university, the senior living community will likely attract alumni, reinforcing their connection to the university and supplementing donations. Furthermore, given the year-round nature of the senior residents, the university will see increased usage of typically underutilized resources outside of the standard academic calendar.
Some universities offer nursing programs whereby nursing students can gather valuable hands-on experience at the affiliated UBRC prior to graduation. This also serves as a natural referral pool for entry-level nurses, which has proven extremely valuable during the continued nationwide nursing shortage, combating recruitment and retention challenges for the senior living providers.
UBRCs provide a unique selling point, attracting older adults who value lifelong learning and academic life. Resident fees, partnerships and philanthropic support can all play a role in the community’s financial success. And by providing retirement services, universities may qualify for certain tax credits for their contributions to retirement programs.
Given the challenges facing both the senior living and higher education industries, these partnerships can enhance the marketability of the product itself and the ability to raise capital to finance these projects. Investors and financial institutions commonly find these projects more attractive to finance when universities and senior living organizations combine their resources and expertise.
As retirement age approaches for you or a loved one, a university-based retirement community could be a great option to help combat rising housing costs and promote mental well-being.
² Greystone Communities (https://www.greystonecommunities.com/insights/university-based-retirement-communities)