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The Rise of Luxury Care Communities

Dec. 5, 2018

As the Baby Boomer generation reaches its senior years, a rising category of luxury Continuing Care Retirement Communities (CRCC) is drawing residents.

These facilities offer services ranging from independent living all the way through failing health. According to the New York Times, the growing industry estimates that 20 percent of baby boomers, or about 15 million people, have saved enough to afford private continuing care. Benefits can include access to a community, as well as high-end resort-style amenities.

Many CRCCs, especially in the luxury category, require expensive entrance fees and monthly charges. Regulations vary by state and can be confusing, but portions of entrance fees can sometimes be returned to the residents’ estates upon their deaths.

“You’re basically investing in your future health care and future needs,” said Stephen Maag, director of residential communities for LeadingAge, an association that represents organizations and businesses in the aging industry. “Then whatever you need within the continuum the community provides will be covered. So you’re basically locking in what you’re going to have to pay for the rest of your life.”

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