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Trade Area Demand Analysis for Private Pay Assisted Living Facilities

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  • Eleanor Tessier
  • Glenn Mueller

Abstract

Executive Summary. Demand analysis for assisted living facilities (ALFs) is a new and growing field. This study attempts to improve ALF demand feasibility models by providing a statistical analysis of residents in four successful ALFs in order to determine where residents came from and what their demographics are, compared to the surrounding community demographics. The results indicate that an average of 70% of the residents and 82% of the adult children come from within a fifteen-mile radius of the four facilities studied, and 80% of the residents and 95% of the adult children come from within a thirty-mile radius of the facilities studied, confirming that the market for ALFs is very local in nature. This study also analyzes the age, gender, income, education, occupation and ADL requirements of residents in facilities to further the understanding of micromarket demand fundamentals and help identify micromarket demographics used in creating a demand model.

Suggested Citation

  • Eleanor Tessier & Glenn Mueller, 1999. "Trade Area Demand Analysis for Private Pay Assisted Living Facilities," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 5(3), pages 275-286, January.
    • Handle: RePEc:taf:repmxx:v:5:y:1999:i:3:p:275-286
    DOI: 10.1080/10835547.1999.12089589
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