The “middle market” is receiving a great deal of attention as well it should. How one defines the middle market is the first question that should be examined. Both a bottom and a ceiling will help establish the parameters. The bottom, would be based on the maximum income for subsidized housing, which may vary by state. And the top will vary from market to market. For example, if the competitive product is priced so that it is primarily affordable to those with incomes of $60,000 or more, then $60,000 should serve as the maximum income for the middle market. The critical question is how to create senior housing products that serve this market segment. Several ideas come to mind. First, the site selection and the type of construction create a framework. Then what goes inside the building in terms of common areas and amenities and unit mix and sizes play a significant role in establishing pricing parameters. In a recent Active Adult Virtual Summit, the middle market was addressed. One interesting point was that it may be easier to serve the middle market if an underperforming property can be purchased. Another recommendation was to integrate a middle market project in a mixed- use development. This provides that opportunity for residents to purchase services like meals, as desired.
