Senior Living Units to Rise in Hayward as Need Increases

Washington-based SRM Development is moving forward with a five-story senior housing project in Hayward, according to public records. The development comes as the demand for senior housing has risen nationally.

The project is located at 1200 A Street and will be 191,840 square feet with 157 units of assisted living and memory care housing. Residents will have access to 18,820 square feet of common amenities, including a commercial kitchen, bistro, theater, gym, wellness center, barber shop and activity room. The courtyard will include a fire pit and barbeque grill. Outdoor parking will accommodate 94 cars.

The need for senior living facilities is dire nationally, according to a report by the National Investment Center. Senior housing occupancy increased 0.9 percentage points from 80.5 percent in the second quarter of 2022 to 81.4 percent in the third quarter of 2022. This is the fourth consecutive quarter of occupancy growth. The metric has increased 3.4 percentage points from a pandemic low of 78 percent in the third quarter of 2021.

According to the report, demand for senior housing is at the highest it has been since 2005 while inventory increased by only 3,489 units, largely due to the pandemic-driven slowdown in construction starts in 2020. Starts were again weak in the third quarter of 2022, and units under construction were the lowest since 2015.
In 2030, the baby boomers will all be over 65; and in 2040, the youngest of the generation will be over 75, according to a report by NAIOP.

“This generation is sometimes referred to as a ‘wave’ because it makes up a large percentage of the population and is expected to require a larger share of health support and housing services,” the report said.

Life expectancy in the U.S. is on the rise, calling for an increased investment in infrastructure to support a longer living population. According to the Centers for Disease Control and Prevention, the average life expectancy in the U.S. was 76.9 in 2000. By 2060, it will increase to 85.6.

In terms of the market, most facilities are older, with 14 percent being built in the last five years. The older facilities lack modern amenities.

“Many older senior living communities were built without the ability to update technology, health, safety or mobility infrastructure, along with smaller units and less of an emphasis on community spaces,” the report said. “New communities are integrating a more hospitality-centered design to facilitate ease of living and social connections, as well as a sense of community among residents.”

Hayward isn’t the only city where SRM plans to build senior housing. The company also has a 197-unit project at the Brooklyn Baskin in Oakland. Also, Halls Equity Group is bringing senior housing to the East Bay; Walnut Creek approved its development of a 136-unit facility in July. The city currently has no available units for senior living.