How Are Assisted Living Feasibility Studies Conducted?
Feasibility studies for senior housing developments are multi-stage processes, considering all factors that determine whether this type of development is suitable for the proposed area.
The preliminary stage for the study starts by defining the Primary Market Area (PMA) and includes looking at potential sites, general economic, population, and demographic trends in that area. Sometimes it can become apparent that there is no real prospect for development in the area in question, and the feasibility study doesn’t have to progress any further. Potential sites also need to be screened to ensure that zoning regulations permit this type of development or if local zoning regulations are likely to change in the near future.
The next stage will involve looking in more detail at the area’s demographics and how the potential client population compares to the existing senior housing and assisted living providers. This will include compiling detailed data on the existing facilities, including their occupancy percentages, amenities, rates, and age of the buildings. In addition, the investigation into demographics will include looking into the economics of the area, including how many 75+ residents are within the PMA and if their income will support moving to the proposed development.
The data required is gathered using a variety of means. For example, census data can be used, but it can be dated and needs to be re-checked if the census date is more than a couple of years ago. Surveys, both online and in-person, are helpful for this. There are also plenty of online resources which collect data on local economic situations.
Feasibility studies are customized to the individual development, based on the level of detail required. This can include additional information such as project timelines, profit and loss projections, revenue projections, and staffing costs. Usually, a detailed study will take between four and six weeks.
If you’re considering a senior housing development or assisted living building, please don’t hesitate to get in touch with us to discuss going forward with feasibility studies.
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