What’s Behind Central Ohio’s Senior Living Construction Surge?

Construction News

The surge in senior living construction across Central Ohio can be largely attributed to the aging of the baby boomer generation. Born between 1946 and 1964, baby boomers are now entering their retirement years en masse, creating an unprecedented demand for senior housing options. This demographic wave is reshaping the landscape of our communities and driving the need for diverse senior living projects.

As of 2024, the oldest boomers are approaching their late 70s, while the youngest are nearing 60. This large cohort is not only sizable but also tends to be more active and engaged than previous generations of seniors. They’re seeking senior living communities that can accommodate their desire for independence while providing a supportive environment for their changing needs.

Increased Life Expectancies

Advancements in healthcare and improved lifestyle choices have led to a significant increase in life expectancy. Today’s seniors are living longer, healthier lives than ever before. This longevity is a key factor in the growing demand for senior housing, as it extends the period during which individuals may require or desire specialized living arrangements.

The increased life expectancy also means that senior living communities need to be prepared to support residents through various stages of aging. From active adult communities to those offering memory care and skilled nursing care, the industry is adapting to provide a continuum of care that can meet the evolving needs of residents over time.

The Aging Baby Boomer Population
Economic Factors Driving Senior Living Construction

Economic Factors Driving Senior Living Construction

Central Ohio’s robust economy is pivotal in fueling the senior living construction surge. A thriving job market attracts younger generations, who often bring their senior family members along or encourage them to relocate nearby.

This influx is further bolstered by the region’s higher average incomes, which translate to greater spending power for seniors and their families, ultimately supporting the demand for high-quality senior living options. The expansion of various industries in the area creates a positive ripple effect, benefiting the construction sector and opening up new opportunities for senior living projects.

As Central Ohio continues to thrive economically, it creates an environment where senior living communities can flourish. These communities can meet the evolving needs of an aging population while contributing to the area’s overall growth and prosperity.

Affordable Land and Construction Costs

Central Ohio stands out as an attractive location for senior living development, offering a compelling combination of affordability and opportunity that sets it apart from many other metropolitan areas. The region boasts ample undeveloped or underdeveloped land suitable for new senior living communities, providing developers with a canvas to create innovative and expansive projects.

This land availability, coupled with competitive pricing, allows developers to allocate more resources to enhance the quality and amenities of the facilities themselves rather than being burdened by excessive land costs. The result is a landscape ripe for creating high-quality and financially viable senior living spaces.

Affordable Land and Construction Costs
Experience Creates Efficiencies

Experience Creates Efficiencies

The local construction industry has played a pivotal role in maintaining this affordability advantage. Companies like Rockford Construction have honed their expertise in senior living projects over the years, developing operational efficiencies and cost-effective building practices that further enhance the region’s attractiveness for development.

Perhaps one of the most significant advantages Central Ohio offers is its skilled construction workforce. The region’s labor market contributes to controlling labor costs while consistently maintaining high-quality standards. This balance of skill and affordability is crucial in an industry where quality can never be compromised, yet cost-effectiveness is key to long-term success.

Collectively, these factors – from land availability and competitive pricing to construction efficiencies, strategic material sourcing, and a skilled labor force – combine to make senior living projects more financially viable in Central Ohio than in many other regions.
As a result, developers are increasingly encouraged to invest in new communities and expand existing ones, fueling the ongoing surge in senior living construction across the area.

Availability of Investment Capital

The senior living industry in Central Ohio has become a magnet for investor interest, ensuring a consistent flow of capital for both new projects and expansions. This attraction stems from the promising returns of demographic trends and the strong demand for senior housing, appealing to investors seeking stable, long-term gains.
The investment landscape is further enriched by the diversity of funding sources available, ranging from private equity firms and REITs specializing in senior housing to traditional lenders. This variety of capital sources allows developers to structure their financial strategies for senior living projects.

Adding to the appeal for investors is the support from government entities, with some projects benefiting from public-private partnerships or targeted incentives. This governmental backing not only enhances the financial viability of projects but also signals confidence in the sector’s long-term prospects. Moreover, Central Ohio’s track record of thriving senior living communities has built a strong foundation of industry confidence.

Availability of Investment Capital
The Healthcare Landscape

The Healthcare Landscape

Central Ohio’s robust healthcare infrastructure is a key driver behind the surge in the construction of senior living facilities. The region boasts a network of world-class medical facilities that are particularly attractive to older adults and their families. Renowned hospital systems in the area, including OhioHealth, OSU Wexner Medical Center, and Mount Carmel Health System, provide seniors with access to comprehensive medical care, including specialized geriatric services.
This is complemented by a variety of specialized clinics catering to the unique health needs of seniors, covering everything from cardiology and orthopedics to oncology.

The healthcare landscape in Central Ohio is further enhanced by the presence of medical research centers, which offer seniors the opportunity to benefit from cutting-edge treatments and clinical trials. Additionally, quick access to emergency medical care throughout the region provides peace of mind for seniors and their families.
This healthcare ecosystem not only attracts seniors to the area but also influences the location and design of new senior living communities. Many new projects are strategically positioned to offer convenient access to these medical facilities, enhancing their appeal to prospective residents.

Government Policies and Incentives

The surge in senior living construction across Central Ohio isn’t just a result of demographic shifts and market forces. Local and state governments have played a significant role in facilitating this boom through various policies and incentives.

As a key player in the construction industry, Rockford Construction has observed firsthand how these government initiatives have shaped the landscape of senior housing development.

Government Policies and Incentives
Zoning Changes Favoring Senior Housing

Zoning Changes Favoring Senior Housing

In recent years, municipalities across Central Ohio have significantly revised their zoning regulations, creating a more favorable environment for senior living development. These updates have introduced mixed-use zoning allowances, integrating senior housing into diverse, vibrant communities that foster intergenerational connections.

Additionally, some areas now offer density bonuses for senior living projects, enabling developers to increase the number of units and enhance the economic viability of their initiatives.

Several jurisdictions have implemented expedited approval procedures for senior living projects, further streamlining the development process. This reduction in bureaucratic hurdles has significantly decreased delays and associated costs for developers.

Collectively, these zoning changes have unlocked new opportunities for senior living development in locations that were previously unavailable or challenging to build in. As a result, these regulatory shifts have played a crucial role in fueling the current surge in senior living construction across Central Ohio, opening doors for innovative projects that cater to the evolving needs of the region’s growing senior population.

Tax Incentives for Developers

Both state and local governments have implemented various tax incentives to encourage the development of senior housing:

Property Tax Abatements

Many municipalities offer multi-year property tax abatements for new senior living developments, significantly improving project feasibility.

Sales Tax Exemptions

Some areas provide sales tax exemptions on construction materials for qualifying senior living projects, reducing overall development costs.

Tax Increment Financing (TIF)

Some communities have used Tax Increment Financing (TIF) districts to support infrastructure improvements related to senior living developments.

Historic Preservation Tax Credits

State and federal historic preservation tax credits can provide substantial financial benefits for projects involving the adaptive reuse of historic buildings for senior housing.

These tax incentives have been crucial in making many senior living projects financially viable, particularly in areas where land or construction costs might otherwise be prohibitive.

Tax Incentives for Developers
Public-Private Partnerships

Public-Private Partnerships

Governments across Central Ohio have increasingly embraced public-private partnerships (PPPs) to facilitate the development of senior living communities. These collaborations take various forms, from municipalities contributing publicly owned land to reduce project costs to local governments partnering with developers to improve infrastructure around senior living projects.

Such partnerships enhance accessibility and integration with the broader community. Additionally, public-private collaborations have spurred workforce development programs, addressing staffing shortages in the senior care industry. State and local grant programs have also been established to support innovative senior living concepts, particularly those focusing on affordability or specialized care needs.

Some PPPs even involve community benefit agreements, where developers provide specific advantages to the local area in exchange for support or incentives, ensuring senior living projects positively impact the broader community.

These partnerships have proven instrumental in bringing complex senior living projects to fruition, often resulting in communities that serve a diverse group of seniors and integrate seamlessly with their surroundings. Government support for senior living development is expected to continue evolving.

As demand for senior housing grows and consumer preferences shift, new policies will likely emerge, encouraging the development of sustainable, technology-driven, and wellness-oriented senior living communities.

This ongoing collaboration between public and private sectors promises to shape the future of senior living in Central Ohio, creating innovative solutions that meet the changing needs of the region’s aging population.

Senior Living Construction Offers a Major Opportunity

As we’ve explored throughout this article, the surge in senior living construction across Central Ohio is a complex phenomenon driven by a convergence of demographic, economic, and social factors. This boom has far-reaching implications for various stakeholders in our community.

As we look to the future, it’s clear that the demand for high-quality, innovative senior living options will continue to grow. However, success in this dynamic market will require more than just building new facilities – it will demand a thoughtful, forward-thinking approach that addresses the diverse needs of seniors while contributing positively to the broader community.

For developers looking to make their mark in Central Ohio’s booming senior living market, partnering with the right construction firm can make all the difference. Whether you’re planning your next project, exploring the feasibility of a new development, or looking to renovate an existing facility, Rockford Construction is here to help.

We invite you to reach out and discover how our expertise can support your vision for senior living. Let’s work together to create communities that not only meet the needs of today’s seniors but also set new standards for the future of senior living in Central Ohio.

Senior Living Construction Offers a Major Opportunity