Senior housing design is entering a new era, propelled by fresh perspectives on what older adults want and need. At the NIC Conference in Austin this month, industry leaders spoke candidly about the evolution underway, saying today’s seniors expect something far richer than the “leisure living” stereotype that’s dominated for years. They want environments that foster active, self-directed lifestyles, brimming with choices and wellness-focused amenities.
This shift is partly economic. Panelists at “Breaking Ground: Overcoming Barriers and Driving Innovation in Senior Housing Development,” moderated by Joe Daniels of Direct Supply, noted that older adults have greater financial resources than previously reported, motivating developers to reimagine what independent living can be. “Boomers today want control of their lives—not control exerted by government or even family,” said Greystone’s Stuart Jackson, describing how his company is prioritizing independent living communities because of their strong financial margins. Greystone typically builds communities ranging from 115 to 180 units, and as Jackson explained, unit sizes are getting larger as younger boomers seek more spacious homes, with averages rising from 1,050 to 1,325 square feet in recent years.
Chris Krager of KRDB + ma modular stressed that architecture matters as much as scale: buildings with horizontal layouts and fewer than 150 units (the so-called Dunbar Number) foster closer bonds among residents and maintain a vibrant social fabric. Krager has moved away from the old “gated enclave” model, instead embracing urban integration. “Today we call our approach ‘The Second Mountain’—situating communities just minutes from downtown so residents stay connected to the broader city. That’s what they want,” he said. To create homes that feel bigger, Krager incorporates features like higher ceilings and ample natural light from multiple sides, emphasizing a connection to nature and the changing seasons. He noted that about 60% to 65% of residents in these communities are single women over 70.
Adaptive reuse is also gaining ground as a development strategy. “Distressed hotels can convert easily to active adult communities, given their facilities for meetings and kitchen space,” said Jay Cougnet of The Whiting-Turner Contracting Company. He cautioned, however, that location and existing building structure remain key considerations.
For the “middle market”—where affordability is crucial—Greystone is exploring merchant building and partnering with mission-driven groups to develop communities that offer housing with minimal additional services, making them accessible to more seniors. But rising costs remain a challenge. Ken Simonson, chief economist at the Associated General Contractors of America, pointed out that U.S. job growth is slowing, while the producer price index for building materials like aluminum, steel and copper keeps rising due to tariff uncertainty—a trend likely to continue into next year. Cougnet reported that construction cost inflation sits between 3% to 5%, much higher than the 2% target set by the Federal Reserve, with regulatory requirements and worker safety adding further expense.
As developers rethink project planning to reduce costs, another concern weighs on the industry: labor and immigration issues. Simonson noted construction is “an easy target” for ICE raids, with about a third of hard-hat workers being immigrants—far above most other sectors. He cited the impact of enforcement, with nearly 28% of companies affected by raids and 5% directly impacted; another 10% have lost workers who resigned out of fear.
Despite economic uncertainties and regulatory hurdles, Simonson remains optimistic about the sector’s long-term trajectory. “Even though we’re hearing some gloomy outlook about prices, the demographics will win out in the long term in this sector. It’ll help us break through with the creation of more needed housing,” he said.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.