Assisted Living Market Study
In October, 2015 the Cook County Grand Marais EDA hired WIPFLi Consulting to conduct a data driven market study and community needs assessment to explore what service gaps exist for at risk older adults in Cook County and to conduct an assisted living market study for Cook County.
The study is now complete and here is a summary of the findings:
- The market demand suggests there is a need for 16 to 20 market rate assisted living units, 8 to 12 market rate memory care units, and 6 to 8 waiver supported assisted living beds in the next five years, for a total opportunity of 30 to 40 beds. Looking forward, to 2021, the demand will increase somewhat as the population continues to age.
- The data suggests that there is a very small senior population in the PMA and market area as defined. The senior populations 65+ are projected to increase significantly for the period. A fairly high percentage of the seniors 65+ in the market area, when compared to the state, are projected to earn more than $35,000 per year. These households will more likely be able to pay privately for assisted living for an extended period of time (several years). A fairly high percentage, when compared to the state, of senior households 75+ have more than $250,000 in net assets. These are considered affluent households.
- There are assisted living facilities of varying sizes (16 to 50 beds) in many small townships, villages, and communities in Minnesota. Just because a market is small, does not mean that an assisted living project would not be sustainable. There are plenty of examples of markets smaller than Grand Maris and Cook County that support 24+ assisted living beds, as well as memory care beds.
The results of the market study suggest that the EDA and other related parties could take steps to qualify potential developers for the assisted living project. This could include issuing requests for qualifications for the development.