The RTAF Senior Housing Model is tailored to each to each type of senior housing property types, ie: independent living, assisted living, memory care, and nursing care. Understanding this, senior housing demand is driven by demographic demand. The RTAF Model deduces the following steps from the universe of records to determine the new construction demand and potential revenue capture.
Step 1 – Age and Income Qualified Households in Primary Marketing Area
Real-time data provides the total number of age and income qualified households stratified by age groups in the primary marketing area.
Step 2 – Senior Housing Property Type
Age and income qualified households are then reduced according to senior housing property type required.
Step 3 – Increase Due to Adult Children Referrals
Total number of additional households expected to move in to primary marketing area are added to total age, income and property type households providing total gross demand.
Step 4 – Reduction Due to Competition
Existing and expected competition in reduced from the total gross demand providing the total net demand.
Step 5 – Penetration Potential for New Construction Demand
INVIZEN IT always runs three (3) scenarios side by side – worst-case, expected-case, and best-case. The Model assumes the middle of the road expected-case to be the most likely outcome. A penetration potential is calculated for each scenario providing New Construction Demand.
Step 6 – Potential Revenue Capture
Again, all three (3) scenarios are side by side outputting the potential revenue capture based on the new construction demand.