The Future of Senior Living Development
The Future of Senior Living Development
The senior living industry stands at a defining crossroads. With more than 10,000 Americans turning 65 each day, the demand for innovative, high-quality senior housing has never been greater. At the same time, the development landscape is shaped by economic headwinds, shifting consumer expectations, and the realities of an evolving workforce. For The Aspenwood Company, a management and development organization with a portfolio of thriving communities across the United States, these dynamics represent both challenges and opportunities.
As we look toward 2026, Aspenwood’s focus is not only on building communities that align with the expectations of today’s seniors but also on cultivating a culture that attracts, supports, and grows the best talent in the industry. Our outlook is one of optimism: we believe the next two years will be a time of preparation, innovation, and intentional growth.
Persistent Development Challenges: Interest Rates and Construction Costs
When asked what challenges will persist in senior living development heading into 2026, two issues rise to the top: high interest rates and elevated construction costs. These factors are not unique to senior housing, but they carry outsized impact in our industry, where feasibility and financing are finely balanced.
The National Investment Center for Seniors Housing & Care (NIC) reports that senior housing construction starts dropped nearly 25% year-over-year in 2023. High borrowing costs continue to slow pipeline activity, while construction costs—driven by supply chain disruptions and skilled labor shortages—add layers of complexity to project timelines and budgets.
At Aspenwood, we remain realistic about these challenges. While we anticipate some moderation in costs over time, neither interest rates nor construction expenses are expected to return to pre-pandemic levels quickly. Instead, we are focused on disciplined, intentional development—choosing projects and markets carefully, backed by strong capital relationships that give us flexibility in an uncertain financial environment.
Design Trends: Meeting Today’s Expectations
Even as developers contend with financial challenges, consumer expectations are evolving rapidly. Today’s senior living customers are not simply looking for housing; they are seeking a lifestyle.
Research from AARP shows that nearly 77% of older adults want to age in or near their existing community, emphasizing the importance of location and connection in senior housing. This aligns directly with Aspenwood’s development strategy: luxury urban infill communities that place residents within walking distance of restaurants, shops, cultural venues, and healthcare providers.
For example, our communities in Houston, Dallas, Austin, Plano, Bedford, McKinney, Spring, Richmond, Denton, and Nashville embody this philosophy. Rather than isolating residents on the outskirts, our communities are woven into vibrant neighborhoods, ensuring access to the same conveniences, culture, and lifestyle seniors have always enjoyed.
The design of these communities reflects not only aesthetics but also functionality: spacious apartments, inviting common areas, curated dining experiences, and wellness-focused amenities. By creating a “community within a community,” Aspenwood ensures that residents enjoy both belonging and independence.
Where We’re Building Next
Looking ahead to 2025 and 2026, Aspenwood is actively scouting new opportunities in markets where demand, demographics, and lifestyle preferences align with our vision. According to NIC, the penetration rate for senior housing remains under 12%, suggesting significant room for growth—especially as the baby boomer generation approaches their 80s in the early 2030s.
The decision on where to build is guided by more than numbers. Aspenwood’s collaborative relationships with capital partners enable us to evaluate markets with precision, ensuring each project is not only feasible but also positioned for long-term success. Our emphasis is on building for the future: communities that will remain relevant, competitive, and impactful for decades to come.
A Transitional Outlook for 2026
The pace of senior living development has slowed since 2020, but we believe 2026 will be a transitional year. While the number of new openings may remain limited, we anticipate more groundbreaking activity as developers position for the next growth cycle. This groundwork will prepare the industry for a more active period of expansion in the years that follow.
This outlook is driven by demographics. By 2030, all baby boomers will be at least 65 years old, and by 2040, the 65+ population will exceed 80 million. The demand curve is steepening, and the industry must be ready. Aspenwood’s strategy is to balance short-term discipline with long-term vision, ensuring that we are not only ready to meet this demand but also shaping the way it is delivered.
Aspenwood’s Thriving Communities Today
Aspenwood is proud to currently manage and operate a portfolio of communities across multiple states, including:
Texas: Houston, Dallas, Austin, Plano, Bedford, McKinney, Spring, Richmond, Denton
Arkansas: Bentonville, Rogers
North Carolina: Charlotte
Tennessee: Nashville
Each community offers a continuum of care—including Independent Living, Assisted Living, and Memory Care—designed to meet residents where they are and support them as their needs evolve. These communities are thriving not only because of their locations and amenities but because of the people who bring them to life every day.
Building a Culture of Excellence
Aspenwood’s success as a management company stems from more than real estate and design. Our true differentiator is our culture—a culture that values associates, nurtures growth, and ensures residents receive the highest level of care.
We are proud to have been recognized as a Great Place to Work®, an award based on feedback directly from our team members. This recognition validates what we already know: when you build a workplace culture rooted in trust, respect, and opportunity, associates thrive—and when associates thrive, residents benefit.
Aspenwood team members have also been recognized individually across the industry for their leadership, innovation, and dedication. From Future Leaders nominations to awards for excellence in engagement and care, these accolades reflect the caliber of professionals who choose to build their careers with us.
Hiring and Growing to Meet Future Needs
The senior living industry will need to attract and retain thousands of new professionals in the coming decade to keep pace with rising demand. Aspenwood is leading the way by building a culture that doesn’t just hire—it develops and grows talent.
From onboarding to professional development, we invest in our associates at every stage of their career. Leadership pathways, mentorship programs, and continuing education opportunities ensure that our teams are equipped to deliver excellence today and lead the industry tomorrow.
This focus on people is strategic. As the industry faces workforce shortages, Aspenwood’s ability to attract, engage, and retain talent gives us a competitive advantage. More importantly, it ensures that our residents receive consistent, compassionate, and high-quality care.
The Aspenwood Difference
As we look toward 2026, Aspenwood is proud to be more than a management company—we are a visionary organization shaping the future of senior living. Our difference lies in the integration of:
Strategic Development: Focused on markets and designs that align with the lifestyle expectations of today’s seniors.
Financial Discipline: Strong capital relationships that enable us to weather challenges and invest in long-term success.
Thriving Communities: A growing portfolio of locations that deliver luxury, connection, and holistic care.
Culture of Excellence: Recognition as a Great Place to Work and a track record of team member success.
People-First Philosophy: A commitment to residents and associates alike, ensuring both thrive in our communities.
Optimism for 2026 and Beyond
The road to 2026 will not be without challenges. High interest rates and construction costs will continue to test feasibility and slow new development. Yet, for companies like Aspenwood, the outlook is one of measured optimism. We believe that by staying disciplined in development, attuned to consumer expectations, and committed to our culture of excellence, we are well-positioned to not only weather these headwinds but to emerge stronger.
As the industry prepares for the unprecedented demand of the coming decade, Aspenwood’s focus remains clear: to create communities where seniors thrive, families feel confident, and associates build meaningful careers. In doing so, we are not only shaping the future of senior living development but also setting a standard for what excellence in this industry looks like.
The promise of 2026 and beyond is bright—and Aspenwood is ready to lead the way.
Written by - Christina O’Leary