Developers See Dearth of High-End Retirement Facilities in California
Senior housing market experts believe California's market is underserved, particularly with luxury retirement communities, the Los Angeles Times reports.
High-end senior complexes are expanding statewide, with entrance fees of up to $1.3 million and nearly $5,500 in monthly charges, depending on the size of units.
Under California law, the majority of such facilities are considered "continuing care retirement communities," in which residents pay an entrance fee to be admitted to independent living units, as well as monthly fees. When community residents require more care, they are transferred to an assisted living section of the development.
Many of the communities offer improved health care services, and some even have "memory care" facilities for residents with Alzheimer's or dementia, according to the Times.
Hyatt's Classic Residence in Palo Alto is an example of a high-end retirement community in California. The admission fee for a couple is nearly $4.2 million, monthly fees can hit $9,000 and the community has a waiting list of 225 prospective residents.
Randal Richardson, president of Hyatt's Classic Residence, and Molly Forrest -- CEO of the Los Angeles Jewish Home, a high-end facility -- said the Los Angeles area is particularly underserved.
Forrest said the lack of luxury accommodations for seniors can be attributed to complex regional factors, such as "the lack of societal planning for an aging population, the high cost of land (and) zoning limitations."
David Schless, president of the American Senior Housing Association, estimates that luxury developments account for no more than 4% or 5% of the senior housing market (La Ganga, Los Angeles Times, 6/12).