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Reimagining Senior Living: AI, Ethics, and a Vibrant Future - A Deep Dive
The podcast explores the evolving landscape of senior living, discussing the limitations of AI, the shifting dynamics of marketing, and the importance of community design. It highlights the need for adaptability in the industry to meet the changing demands of a new generation of residents.
• AI's role in senior living is nuanced, requiring human connection
• Decline of third-party referral sites changing power dynamics
• REITs are increasingly taking active roles in operations
• Staffing challenges remain from pandemic impacts
• Demand from aging baby boomers pushing innovation
• Evolving design emphasizes intergenerational connections
• Industry must adapt to attract younger decision-makers
• Shift towards dynamic, engaging community environments
• Perception of senior living is changing positively
• Need for personalized and high-quality care remains strong
A few years back, there was this widespread belief that AI would revolutionize senior living, with promises of increased efficiency, automated tasks and even robot caregivers.
Speaker 2:But the reality has been a bit more nuanced. The excitement around AI and senior living is starting to fade, seems like it's not quite the magic bullet everyone was hoping for.
Speaker 1:While AI is being used in some areas, like fall detection and data analysis, it hasn't transformed the industry in the way many predicted. In fact, there's growing skepticism. People are starting to realize that AI can be a powerful tool, but it's not a replacement for human care and connection. It highlights the need for human oversight and critical thinking. We can't just blindly rely on algorithms to solve complex problems in senior living. As AI becomes more integrated into senior living, it's crucial to have clear guidelines and safeguards in place to ensure it's used responsibly and ethically.
Speaker 3:Welcome to the Senior Housing Investors Podcast. If you are an owner operator, investor, developer or buyer of senior housing, you've come to the right place. The best way to stay connected with us is to sign up for our weekly newsletter at havenseniorinvestmentscom. This podcast doesn't exist without you, our community. Thank you for listening and reach out to us anytime.
Speaker 2:We're going to do a deep dive into the future of senior living.
Speaker 1:The future of senior living.
Speaker 2:Yeah, we're going to be exploring all the trends and transformations that are shaping this industry in 2025 and beyond, and beyond and beyond. Our guide for this journey is Tim Reagan's insightful article Senior Living in 2025, trends and Transformations.
Speaker 1:Great article.
Speaker 2:It's published in Senior Housing News.
Speaker 1:Senior Housing News yep, so it's a fascinating time for this industry. Housing news Yep, so it's a fascinating time for this industry. We're seeing a convergence of challenges and opportunities that are really pushing senior living to evolve in new and exciting ways.
Speaker 2:It's like they're rebuilding the plane while it's still in flight.
Speaker 1:Yeah, that's a good one. It's a good analogy.
Speaker 2:And you know there are some real surprises in this report, things I never would have expected. Oh, yeah. Like the decline of those big third-party referral websites, yeah, and how. Ai isn't quite the game changer. Everyone thought it would be.
Speaker 1:Right. Those are some of my biggest takeaways, too, especially with the referral sites. It seems like senior living communities are taking more control over their marketing and relationships with potential residents.
Speaker 2:That's a huge shift, but let's back up for a second and talk about the challenges that are still lingering from the pandemic. The article mentions lost revenue, staffing shortages and, of course, the ongoing need to maintain high quality care.
Speaker 1:All valid concerns, for sure. But you know, the silver lining is that the aging baby boomer population is creating a massive demand for senior living options. Yeah, a massive demand for senior living options. Yeah, this surge in demand is actually driving innovation and forcing the industry to adapt in ways we haven't seen before.
Speaker 2:So it's like necessity is the mother of invention, in this case.
Speaker 1:You got it.
Speaker 2:Now let's dive into one of those surprising trends we mentioned earlier the declining influence of third party referral sites like A Place for Mom, yeah, apf, apfm. These sites used to be the go-to resource for families searching for senior living options.
Speaker 1:They did yeah.
Speaker 2:But they seem to be losing their grip. What's driving that change?
Speaker 1:Well, there are a few factors at play here. Okay, first, google changed its search algorithm.
Speaker 2:Oh right.
Speaker 1:Which has made it harder for these referral sites to show up prominently in search results. Makes sense and then you have major senior living providers like Brookdale and Sunita Big names, Big players Pulling back from their reliance on these sites, choosing to focus on their own in-house marketing strategies instead. They want more control over their brand messaging and to reduce the costs associated with those referral fees.
Speaker 2:It sounds like a power shift is happening, with senior living communities reclaiming control over their lead generation process, but what about the referral sites themselves? Are they just going to fade away?
Speaker 1:Well, I don't think it's a complete extinction event for them.
Speaker 2:OK.
Speaker 1:They're adapting by working more closely with operators and offering different services. A place for mom, for example, is trying to become more of a partner to senior living communities Instead of Rather than just a lead generator.
Speaker 2:Interesting. So it's not a complete extinction event for referral sites, but definitely a shakeup.
Speaker 1:Definitely a shakeup.
Speaker 2:Now let's move on to another power dynamic, that's changing REITs, or real estate investment trusts.
Speaker 1:REITs, reits.
Speaker 2:REITs. They're going on what the article calls a shopping spree. Can you break that down for us? What exactly does that mean? Sure?
Speaker 1:Essentially, REITs are companies that own and often manage various types of properties. Okay and SHOP stands for Senior Housing Operating Portfolio.
Speaker 2:Senior Housing Operating Portfolio. What's happening is?
Speaker 1:that these REITs are increasingly converting their properties to SHOP. Senior housing operating portfolio. Senior housing operating portfolio. What's happening is that these REITs are increasingly converting their properties to shop, meaning they're taking a more active role in the day-to-day operations of the senior living communities they own. They're not just landlords anymore. They're becoming more like hotel chains.
Speaker 2:Oh, interesting.
Speaker 1:Or even health care providers.
Speaker 2:So they're getting more skin in the game, so to speak.
Speaker 1:Exactly. They're taking on more responsibility but also potentially reaping greater rewards Makes sense. Some executives quote in the article see this as a unique opportunity to shape the future of senior living. They can have more influence over everything from resident care to staffing to the overall quality of the community.
Speaker 2:That makes sense, but I imagine there are challenges that come with that level of involvement too right.
Speaker 1:Absolutely. Managing a large portfolio of senior living communities is complex. It requires expertise, resources and a deep understanding of the industry.
Speaker 2:For sure.
Speaker 1:It'll be interesting to see how these REITs navigate the potential risks and rewards of this increased operational control.
Speaker 2:Okay. So we've got these major players shifting their strategies and vying for influence, but let's not forget about the impact of the political landscape. The new administration is stirring up some old anxieties around trade and immigration, and those could have ripple effects throughout the senior living industry. It's all about uncertainty. The article mentions potential tariffs similar to the ones that drove up lumber prices back in 2018. Oh wow. That kind of thing could significantly impact construction costs for new senior living projects. And, of course, there's the potential impact on staffing. Senior living communities are already facing a workforce shortage, and the prospect of mass deportations certainly wouldn't help matters.
Speaker 1:Right, and it's not just about the number of workers. It's also about losing experienced caregivers who understand the unique needs of this population. Yeah, that kind of disruption could have a real impact on the quality of care.
Speaker 2:The article also mentions the appointment of some controversial figures like Robert F Kennedy Jr and Dr Mehmet Oz to key health-related positions. Right, that adds another layer of unpredictability, especially if we were to face another pandemic.
Speaker 1:Yeah, we saw during the COVID-19 pandemic how crucial clear, evidence-based guidance from health officials is for the senior living industry. Having individuals with questionable stances on health issues in positions of authority could make it more difficult to navigate future health crises.
Speaker 2:It sounds like senior living providers need to be incredibly agile and adaptable in the coming years to navigate all these potential challenges. Now let's shift gears and talk about something that's been generating a lot of buzz.
Speaker 1:Artificial intelligence, ai. A few years back, there was this widespread belief that AI would revolutionize senior living.
Speaker 2:Yeah, I remember that.
Speaker 1:With promises of increased efficiency, automated tasks and even robot caregivers. Robot caregivers there was a lot of hype around AI back then.
Speaker 2:It was, but the reality has been a bit more nuanced.
Speaker 1:Yeah.
Speaker 2:The article mentions that the excitement around AI and senior living is starting to fade. It seems like it's not quite the magic bullet everyone was hoping for.
Speaker 1:While AI is being used in some areas, like fall detection and data analysis, it hasn't transformed the industry in the way many predicted. In fact, there's growing skepticism. People are starting to realize that AI can be a powerful tool, but it's not a replacement for human care and connection.
Speaker 2:The article gives some interesting examples of AI's limitations. For instance, those AI-powered tools designed to generate marketing content often produce what they call AI slop, basically meaningless gibberish.
Speaker 1:Right. It highlights the need for human oversight and critical thinking. We can't just blindly rely on algorithms to solve complex problems in senior living.
Speaker 2:And speaking of oversight, the article mentions the increase in regulation of AI in health care.
Speaker 1:Yeah.
Speaker 2:It seems like lawmakers are starting to pay attention to the potential risks and ethical considerations surrounding AI.
Speaker 1:That's a positive development, yeah. As AI becomes more integrated into senior living, it's crucial to have clear guidelines and safeguards in place to ensure it's used responsibly and ethically, especially when it comes to people's health and well-being.
Speaker 2:It seems like the key takeaway here is that AI has a role to play in senior living, but it needs to be approached strategically, ethically and always with a human-centered focus.
Speaker 1:Well said.
Speaker 2:It's a tool to augment and support. Care not to replace it entirely. Absolutely Okay, so AI it's a tool, not a takeover.
Speaker 1:Not a takeover, Not yet anyway.
Speaker 2:Not yet.
Speaker 1:Right, okay, so we've talked about some of the forces shaping the industry from the outside. Now let's zoom in on the communities themselves. The article really emphasizes how senior living is breaking free from those old cookie cutter models.
Speaker 2:Right. It's fascinating to see how senior living communities are evolving to meet the needs and desires of a new generation of older adults.
Speaker 1:Gone are the days of bland beige walls and bingo nights being the main attraction.
Speaker 2:Exactly. It's like senior living is finally getting a much needed makeover.
Speaker 1:I love that the article gives some great examples of this shift. For instance, some communities are being built alongside other housing types to encourage more intergenerational connections.
Speaker 2:Yeah, that's a great idea, and we're seeing more incorporation of biophilic design. Biophilic design, that means bringing elements of nature indoors to create a calming and restorative environment Think indoor gardens oh nice, natural light and using natural materials in the design.
Speaker 1:It's all about creating a space that feels vibrant and alive, not institutional, absolutely. Senior living is becoming more personalized and tailored to specific lifestyles and interests. I like that. For example, the article highlights a company called Avenue and their innovative Viva Bene concept. Viva Bene, it combines active adult living with preventative health services so residents can focus on staying healthy and engaged.
Speaker 2:It's like a proactive approach to aging well. I can see that being really appealing to baby boomers and future generations, who are used to having more options and control over their lives.
Speaker 1:Absolutely. And you know what else is interesting? The article points out how senior living companies are increasingly targeting their marketing efforts towards younger decision makers. Often, it's the adult children who are influencing their parents' choices.
Speaker 2:Makes total sense. Even it's the adult children who are influencing their parents' choices Makes total sense. They're the ones who are looking for modern amenities, vibrant communities and activities that align with their parents' interests and values. They want their parents to have the same quality of life they do.
Speaker 1:Exactly. They grew up with things like yoga studios and farmer's markets. They're not going to settle for a place that feels outdated or isolating.
Speaker 2:Now this next topic raises a big question how big can these senior living companies get while still maintaining a focus on personalized, high-quality care? The article uses Brookdale, the nation's largest senior living operator, as a case study. They're constantly grappling with that balance between growth and maintaining a personal touch.
Speaker 1:It's a delicate balancing act. For sure, there are certainly advantages to scale Larger companies can often negotiate better rates with suppliers and potentially offer more services. But there's also a risk of becoming too impersonal and losing sight of the individual needs of residents.
Speaker 2:Like that old saying, too many cooks in the kitchen.
Speaker 1:Exactly.
Speaker 2:But on the other hand you need a certain amount of scale to meet the growing demand and keep costs manageable. It's a tough challenge.
Speaker 1:It really is. The article also mentions the emergence of other large players, like Discovery, senior Living, who are experimenting with different growth models. It'll be interesting to see how these companies adapt and find that sweet spot between size and quality.
Speaker 2:And you know, the article throws in this really fun twist.
Speaker 1:Oh yeah.
Speaker 2:The idea that senior living is starting to appeal to younger demographics. They even call it the Taco Bell effect.
Speaker 1:The Taco Bell effect.
Speaker 2:Remember those Taco Bell ads featuring seniors enjoying their retirement with tacos and carefree fun?
Speaker 1:Oh, I remember those. They were hilarious.
Speaker 2:Weren't they great.
Speaker 1:But it makes a point, doesn't it? Yeah, that whole image of retirement is changing.
Speaker 2:Right, it's not just about shuffleboard and early bird specials anymore. Nope, people are looking for communities that are vibrant, engaging and relevant to their interests, regardless of their age.
Speaker 1:And this is where the influence of Gen X and millennials comes in Right. Not only are they potential future residents themselves, ok, but they're also the ones helping their parents make decisions about senior living.
Speaker 2:And they're looking for something different than previous generations. They want to see modern amenities, diverse activities and a focus on community engagement.
Speaker 1:It's about creating a space where people can truly thrive, connect with others and continue to pursue their passions.
Speaker 2:And the media is playing a role in shifting perceptions too. Oh huh so the article mentions how shows like Netflix's A man on the Inside and the development of Disney's Story Living Communities are presenting a more positive and appealing image of senior living.
Speaker 1:That's great. It's like senior living is finally getting a much needed image makeover. It's moving away from those stereotypical depictions of stuffy retirement homes and embracing a more modern, inclusive vision.
Speaker 2:This has been such a fascinating conversation. So far We've covered a lot of ground, from the challenges of the pandemic to the power dynamics of the industry, to the evolving desires of residents.
Speaker 1:It's remarkable how much is changing.
Speaker 2:It really is.
Speaker 1:And I think it really highlights the need for the industry to be flexible, innovative and truly responsive to the needs of a changing population. It's been quite a journey, hasn't it? We've covered a lot of ground.
Speaker 2:We have, from the lingering impacts of the pandemic to the surprising decline of those big referral sites, to the evolving role of AI. It feels like this industry is in a constant state of flux.
Speaker 1:It is, and that's what makes it so fascinating to follow. There's always something new happening, some new trend emerging, some new challenge to address.
Speaker 2:You know. After all this talk about industry trends and transformations, I'm curious what stands out to you as the most significant shift happening in senior living right now.
Speaker 1:That's a great question. Honestly, it's hard to pick just one thing. There are so many factors at play. But if I had to choose, I think the most profound shift is the evolving perception of senior living itself.
Speaker 2:Can you elaborate on that a little bit? What do you mean by evolving perception?
Speaker 1:Well, for decades, senior living had this image problem. It was seen as a last resort, a place you went when you couldn't live independently anymore, and it was often associated with images of sterile environments and a lack of autonomy.
Speaker 2:Yeah, those stereotypical images of bingo halls and bland dining rooms definitely don't paint the most appealing picture.
Speaker 1:Right, but what we're seeing now is a real effort to change that narrative. Senior living communities are becoming more vibrant, more engaging and more focused on meeting the individual needs and desires of residents. They're offering a wider range of amenities, activities and lifestyle options.
Speaker 2:They're offering a wider range of amenities, activities and lifestyle options. It's like senior living is finally catching up to the expectations of a new generation of older adults who are used to having choices and control over their lives.
Speaker 1:Exactly, and this shift in perception is being driven by a number of factors. We talked earlier about the influence of baby boomers and their desire for more personalized experiences. And then you have the adult children, who are often involved in the decision-making process. They're looking for communities that are modern and appealing, that offer their parents opportunities for growth and engagement.
Speaker 2:And let's not forget the role of media in shaping perceptions. We mentioned the positive portrayals of senior living in shows like A man on the Inside and the development of Disney story living communities. Those are really helping to break down stereotypes and showcase a more modern and vibrant vision of senior living.
Speaker 1:Absolutely, and that shift in perception is crucial If we want to attract the best talent to work in this industry and create communities that truly meet the needs of a diverse aging population. We need to change the story we're telling about what senior living can be.
Speaker 2:I completely agree. It's not just about providing a place to live anymore. It's about creating communities that foster a sense of purpose, belonging and continued growth.
Speaker 1:Well said. And that brings me to a final thought-provoking question for our listeners to ponder as senior living continues to evolve what role will technology play in shaping the future of care? Will we see more AI-powered tools that enhance independence and safety, or will the focus shift towards human-centered design and creating spaces that foster genuine connection and community?
Speaker 2:That's such an important question. It really gets to the heart of what matters most in senior living, and it's something that we all, regardless of our age, should be thinking about. After all, we're all aging, and the choices we make today will shape the communities of tomorrow.
Speaker 1:So true, and that's what makes this topic so compelling. It's not just about senior living. It's about envisioning a future where aging is embraced as a natural part of life and where communities are designed to support well-being, purpose and connection for everyone.
Speaker 2:Well, this has been a truly fascinating DupDive. Thanks to Tim Regan and Senior Housing News for providing such insightful perspectives on this evolving landscape.
Speaker 1:It was my pleasure. Thanks for having me.
Speaker 2:And to our listeners, thank you for joining us. We encourage you to explore this topic further, share your own thoughts and questions and start envisioning the kind of senior living experience you would want for yourself or your loved ones, because, remember, it's never too early to start thinking about how you want to live well, need, gracefully, and create a future filled with purpose and joy.
Speaker 1:Until next time.
Speaker 2:Stay curious, stay engaged, keep those minds sharp. You.
