The Demand for Senior Housing Grows. The Answer Is to Be Found in Various Models of Social “Enterprise”

Abstract

By 2025, it is predicted that over-65s will represent 20% of the population of the European Union. This slice of the real estate market, however, is still extremely fragmented, with huge differences depending on the country and type of solutions. There is a certain discrepancy between countries in Europe. Basically, in some areas, senior housing is often a synonym of social housing, created to help disadvantaged sectors, often set up by age but also as disposable income. In Italy, the number of over-65 year olds will jump from 13 million to 16 million by 2030. And many of them like the idea of sharing communal areas and services. According to research undertaken by the Censis per Future concept lab, 89% over over-65s believes their income will increase, one million would like to renovate their homes and 530 thousand do not exclude the possibility of investing in real estate. Therefore, even in Italy cohousing for the elderly is making progress—a business model based on social enterprise. One of the most recent projects launched in Milan by Abitare Leggero—a social enterprise of three partners—comes under this particular scenario. The social enterprise does not directly buy the homes, but takes on all aspects of maintenance and management. The company signs the rental agreement, basically becoming the lessor and paying all rent in advance. This solution is of great benefit for the owners as well as for the tenants, especially for those who own entire small complexes. In Milan, alone there are dozens of complexes that have already been completed and are inhabited, with ground floor properties that are still empty as obliged for use for so-called compatible functions, such as retail, which are hard to lease. Social enterprise could be a solution for these areas, using them for communal social activities or services.