I read a news story today that caught me off-guard. It concerned the impact of the soft residential real estate market on the senior care industry. The story profiled several Florida-based operators of life-care communities, commonly known as Continuing Care Retirement Communities or CCRCs. These communities provide a range of care that runs from activities for active seniors to assisted living and skilled nursing for those who need it. The cost to join one of these communities is steep; the article quoted buy-ins ranging from $75,000 to $500,000 which typically involves the sale of the resident�??s home. However, in this soft market homes aren�??t selling according to a predictable schedule which has led, at best, to some pretty creative marketing techniques (accepting what amount to IOUs for the home sale that have due dates as far as six months out) at some facilities to, at worst, vacancy rates as high as 20% at many CCRCs that are accustomed to vacancy rates of 0-3%. Anytime revenues slow due to declining occupancy, staffing cuts typically follow, though the same challenges can open opportunities for truly creative marketing and sales people. This will be an interesting phenomenon to track from a recruiter�??s perspective.

