Forge Resilient Communities: Strategies for Growth and Community Longevity

The senior housing industry is entering a transformative era—where demand is surging, expectations are shifting, and growth opportunities are abundant. For providers, this means reimagining expansion strategies to meet market needs and ensure long-term financial resilience and community relevance.

In this blog, you’ll discover expert-backed strategies to help your organization:

• Build flexible, future-proof master plans
• Strengthen financial foundations for expansion
• Earn support from residents, boards, and stakeholders
• Adapt to evolving consumer preferences and care models

Whether you’re planning a full-campus redevelopment or just laying the groundwork for long-term growth, these insights from industry leaders will help guide your next move.

Why Senior Living Expansion Matters in 2025

Senior living communities face a compelling case for expansion. Industry projections suggest 2025 will continue the trajectory seen in 2024, presenting forward-thinking, financially stable organizations with opportunities for strategic advancement. 

By 2030, all baby boomers will reach 65 or older, while the centenarian population could balloon from 92,000 to approximately 600,000 by 2060. This surge brings substantial wealth accumulation, creating fertile ground for campus updates and improvements. 

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“This market is not only growing with population but also with wealth dynamics. When we measured a particular market in 2023, there were about 1,700 households aged 75 years and older with annual incomes of $100,000 or more. In 2024, it jumped to 2,300 households—a 29% increase in one year,” said Stuart Jackson, Executive VP at Greystone. 

With population shifts accelerating and market expectations evolving, growth in the senior living sector is no longer optional—it’s essential. The projected rise in longevity, affluence, and diversity among older adults is transforming what senior living must deliver.

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How Senior Living Design Has Evolved Over 40 Years

Understanding how dramatically the senior living model has transformed over 40 years helps leaders anticipate and prepare for future shifts. Janice Maloney, Principal at Sawgrass Partners, describes this evolution: “Many providers started with that healthcare focus—very heavy healthcare distribution on campus, maybe a nursing home, maybe some 400-square-foot independent living units, with that model of ‘turnover all your assets to us, and we’ll take care of you for the rest of your life.’” 

Today’s communities emphasize independence, choice, and lifestyle. The model has flipped, with much greater emphasis on independent living and decreased healthcare beds. Some even extend beyond physical walls to foster connections with surrounding neighborhoods. 

“We’ve moved away from this notion of segregating our older adults,” notes Maloney, “and toward really integrating them into the general community, keeping people engaged and active.” 

This historical context reveals how consumer preferences, healthcare delivery models, and financial structures continue to change in sometimes unpredictable ways—a crucial variable for any expansion plan. 

Strategic Planning for Senior Living: Flexibility & Financial Resilience

With this understanding of why growth matters and how the industry continues to develop, senior living executives can benefit from effective planning to foster and manage development.  

Strategic Planning as a Living Process 

A successful development strategy begins with thoughtful forethought that acknowledges change as constant. Senior Vice President at JLL, Bryant Wilson, advocates that master planning shouldn’t be a “one-and-done” exercise but rather a tool that evolves with changing market conditions: “Think of it as setting a pathway, then revisiting it regularly.” 

This planning process must also align with the community’s mission and vision. “What are you trying to achieve as an organization? What’s your mission? What’s your target market?” questions Jason Jorgenson, Senior VP at LCS. “All of that should be informing your master plan, making it a living, breathing document that’s constantly evolving.” 

Preparing for the Journey 

Communities contemplating a more significant footprint or other improvements should recognize and communicate the extended timeline. “For anybody that’s gone through a big renovation project or starting a campus out of the ground, that is not a short timeline,” warns Maloney. “It can easily be five to seven years, sometimes longer, depending on approval processes and pre-sales.” 

Wilson adds that internal socialization of expansion plans also takes time: “Communicate the same message three times—the first time someone is going to hear it but not absorb it, the second time they’ll remember they heard something like it and start to think about it, the third time they’re registering it.” 

In addition to residential messaging, board development plays a crucial role in preparing for an extensive project. When a client with a 50-year-old business wanted to reimagine their campus, Maloney shares that “the CEO spent about two years working to educate the board.” 

Tackling Senior Living Construction Costs & Budgeting Challenges

Construction costs have skyrocketed by 30-40% in recent years, presenting significant challenges for establishments planning growth. Adam Heffernan, Senior Vice President at Greenbrier, notes that this escalation, combined with higher interest rates, has altered the development landscape: “That means products have to be designed to be more efficient, especially as it relates to non-revenue space for common areas and circulation.” 

Consider these strategies for addressing financial hurdles: 

1. Price appropriately to build reserves: “Don’t feel bad about staying with the market rate,” Jackson advises. “That helps you build the cash you’ll need to put equity and capital into expansion.”
2. Focus on operational efficiencies: “One or two or three full-time equivalents—you’d be amazed what that translates to in borrowing capacity,” Maloney points out. “Spend time looking at operating models, adjacencies, and efficiencies.” 
3. Balance project scope and budget early: “As early as possible in the process, find a balance,” Wilson recommends. “If you don’t know what you can actually afford, you will fight yourself on the back end trying to either find more money or reduce scope.” 
4. Create flexible plans that anticipate variables: “The plan has to account for risks,” Jackson emphasizes. “Define them and have flexibility built within your plan. You can respond if something moves that you can’t control, like interest rates or construction costs.” 
5. Consider innovative approaches: “Adaptive reuse is something we’re looking at,” Jorgenson shares. “We’re converting an existing building into a clubhouse for a new Greenfield community. That’s an example of finding different ways to control costs.” 

Gaining Stakeholder Support for Senior Housing Expansion

One of the most significant challenges is gaining support from current residents and board members. It is important to address the question residents inevitably ask: “What’s in it for me?” 

Jackson suggests structuring the business model to demonstrate clear benefits: “We want that expansion, even if it’s supporting non-revenue producing space, to support itself and generate excess financial resources for the organization’s benefit. This helps answer the key question you’ll get from residents about why they should support you.” 

Wilson stresses the role of board members as ambassadors: “Those board members are going to be involved, and not just at a board level—residents are going to reach out and contact them. If those representatives are aligned with your project, they are great champions back to them.” 

Adapting to Changing Consumer Preferences in Senior Living

Both for-profit and non-profit establishments must stay attuned to changing consumer preferences to ensure their plans remain relevant. Heffernan describes this evolution: “We’re seeing a shift from folks looking for a pastoral, quiet place to live out their days in peace to people wanting to be more engaged and have an active lifestyle.” 

This transformation extends to healthcare models as well. “We’re seeing new life plan communities being developed now without nursing as part of the continuum of care,” Heffernan notes. “It’s not a mandate, but the trend has been to still provide that promise of care through other means.” 

Jorgenson provides a compelling example: “We challenged ourselves to answer the question: can we still promise that when you move in, you don’t have to move out? The statistics we’ve looked at show that less than 2% would ever have to move out for skilled nursing if you were able to provide high complexity assisted living.” 

Key Takeaways for Senior Living Leaders 

1. Start planning today, even if expansion seems distant. The timeline from concept to completion can span five to seven years. Begin with strategic planning that compliments your mission, then develop a master plan that adapts as conditions change. 
2. Price appropriately to build financial resilience. Many communities hesitate to raise fees, particularly entrance fees, but maintaining market-rate pricing builds reserves for future investments and sustains financial health. 
3. Balance scope and budget as early as possible. The sooner you synchronize what you want to build with what you can afford; the smoother your project will progress. Set realistic expectations from the beginning to avoid painful reductions later. 
4. Focus on operational efficiencies, not just construction costs. Remember that staffing often represents a larger long-term cost than construction when developing financial projections. Design spaces that promote efficiency and reduce ongoing expenses. 
5. Build flexibility into plans to accommodate market shifts. Interest rates, construction costs, and consumer preferences will change throughout your project timeline. Create plans with enough flexibility to align with evolving conditions without derailing your vision. 

As senior living communities continue to evolve, successful providers will be those who plan ahead, adapt quickly, and stay financially agile. Strategic growth isn’t just about breaking ground—it’s about aligning your mission with market realities and building systems that can weather change.

Start planning today—even if your expansion is years away. Define your goals. Price for resilience. Design for flexibility. And above all, bring your board, residents, and leadership team along for the journey.

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This article is based on insights from the “Innovating for the Future: Learning from the Past Savvy Advice from Senior Living Development Leaders” session at SFCS’s 40th annual By Design conference. Sign up for future By Design updates here.

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Sources: 

U.S. Census Bureau, decennial censuses and vintage 2017 population projections (2020-2060). 

Federal Reserve (Data: 4Q22, Pub: May-23). Owner-occupied 1–4-unit buildings only. 

Janice Maloney, Principal at Sawgrass Partners; Stuart Jackson, Executive Vice President at Greystone; Jason Jorgenson, Senior Vice President of Development at LCS; Adam Heffernan, Senior Vice President at Greenbrier; Bryant Wilson, Senior Vice President at JLL; and Amy Taft, Project Designer/Senior Associate at SFCS. “Innovating for the Future: Learning from the Past – Savvy Advice from Senior Living Development Leaders.” Panel discussion at By Design: Past. Present. Future. conference.