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Retirement Communities in the US Industry Market Research Report from IBISWorld Has Been Updated
Date:10/24/2013

Los Angeles, CA (PRWEB) October 24, 2013

The Retirement Communities industry is forecast to exhibit accelerated growth in the next two decades. An aging population and growing need for dementia care (care provided to those with memory impairment) are stimulating much of the industry's growth. Retirement communities provide a number of services to assist seniors who suffer from chronic illnesses or with activities of daily living. In the past five years, the number of assisted living facilities that provide dementia care has risen as a proportion of total facilities. While the industry has exhibited some resistance to the recession, a poor housing market hampers individuals' ability to move into a community because many seniors finance the expenses of retirement communities through selling their houses. As a result, the housing market's downturn over the past five years has stifled industry revenue growth. During this period, IBISWorld estimates that industry revenue will grow at an annualized rate of 3.2% per year to $53.9 billion, including a projected 3.1% jump in 2013.

According to IBISWorld Industry Analyst Anna Son, “Profit has been pressured slightly since 2008, mainly due to the costs associated with regulation compliance, although most companies have managed to maintain profitability through higher rent and entrance fees.” In addition, profit margins for the Retirement Communities industry have benefited from the cutback in the supply of facilities due to hindered construction, which increased occupancy levels in existing facilities. As a result, higher occupancy rates were able to buoy the industry's profit margins, offsetting the declines in demand from those affected by the recession.

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