Kat Koutsantonis Chief People Officer | realtors.com
In Silicon Valley, affluent baby boomers are choosing to spend their later years in luxury communities like Vi at Palo Alto. These life plan communities offer a range of services and amenities, with upfront payments starting at $1.17 million for a one-bedroom apartment and reaching up to $7.3 million for a three-bedroom unit. Monthly fees can be as high as $13,800, covering services such as housekeeping and valet parking.
Residents enjoy cultural activities including lectures by Stanford University professors and opera performances. Life plan communities allow residents to transition from independent living to more intensive care as needed, with occupancy rates in independent living units now exceeding 80%, according to NIC MAP Vision.
Contracts often resemble memberships that lock in rates for future care needs. Virginia Pollard, who lives with her husband David at Vi at Palo Alto, says these arrangements provide peace of mind: “It’s a gift to our kids.”
The decision-making process for selecting a community is likened to choosing a college. Residents seek environments where they feel comfortable among peers with similar interests.
Kendal Corp., which has life care communities near Oberlin College and Cornell University, often has waitlists similar to those of colleges. Ron Litvak from Denver is on waitlists for two such communities after witnessing his parents' isolation due to health issues.
Entrance fees for these communities average between $100,000 and $400,000 but can reach up to $7 million depending on location and market conditions. Lisa McCracken from the National Investment Center notes that most are located in metropolitan areas.
Monthly fees average about $4,800 but have seen increases recently. Some communities offer rental options or lower entry fees with higher nursing care costs. Others provide an at-home option with membership fees ranging from $50,000 to $140,000.
David Pollard reflects on their move into Vi at Palo Alto: “We saw a whole lot of problems coming our way.” The couple enjoys various activities within the community and feels assured by their decision.
Long waiting lists benefit life plan communities by maintaining high occupancy levels quickly when vacancies arise, according to Tripp Higgins of myLifeSite.
Jane McCaffrey moved into Meadow Ridge in Redding, Conn., finding financial benefits compared to maintaining her previous home: “I would be paying more if I lived in my very big house.”
Her monthly fee covers numerous services under her life care contract: “I’m here until I die.”
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