Digital tech to reshape senior housing with AI, telemedicine: expert

AI is also being used to improve workforce management, helping optimise staffing levels and reduce labor costs.

Digital technology is playing an increasingly significant role in senior housing, with innovations aimed at improving care, reducing costs, and enhancing the quality of life for older adults.

According to a new report by McKinsey & Company, advancements in AI-driven health monitoring, wearable medical devices, and telemedicine are expanding the options available to seniors whilst offering potential efficiency gains for senior-housing providers.

The report noted the world’s ageing population is growing rapidly. By 2050, the number of people over 65 is expected to reach 1.6 billion, more than double the 2021 figure.

As life expectancy increases, health-related challenges are also becoming more common, with fewer than half of seniors reporting that they are in good physical, mental, or social health.

Many older adults prefer to remain in their homes for as long as possible. In some countries, including China and Nigeria, over 90% of seniors say they would rather age in place than transition to a senior housing facility. However, access to suitable housing, healthcare, and support services can be limited, creating challenges for both seniors and their families.

Senior housing providers also face rising costs. Since 2019, construction costs in the UK have increased by 29%, leading to a 24% decrease in new residential projects.

In the US, labour costs, which make up a significant portion of senior-living operating expenses, have risen 20% beyond pre-pandemic levels. These rising costs have made expansion more difficult and have contributed to affordability concerns for many seniors.

According to McKinsey, digitalisation may help address some of these challenges by increasing efficiency and reducing operating costs.

The report outlined several areas where technology could improve senior housing, including AI-powered workforce management, remote health monitoring, and the use of electronic health records (EHRs).

Wearable health devices are one example of how technology is being used to monitor seniors in real-time. These devices can track movement, detect falls, and monitor vital signs, allowing caregivers to respond more quickly when needed.

The report suggests that remote monitoring could also help reduce hospital readmissions by detecting early signs of health deterioration.

Many senior housing providers have also adopted EHRs to streamline care management. In 2022, 80% of large senior-living communities had implemented EHRs, according to McKinsey.

The report stated these systems help caregivers access medical histories more efficiently, reducing administrative errors and improving coordination between healthcare providers.

AI is also being used to improve workforce management. Digital scheduling and predictive analytics may help optimise staffing levels, reducing labor costs whilst ensuring that residents receive necessary care.

According to McKinsey, automation in scheduling and administrative tasks has the potential to increase productivity by 15%, allowing staff to focus more on direct care.

In addition to healthcare applications, smart-home technology is becoming more common in senior housing. Features such as voice-activated devices, fall-detection sensors, and smart lighting can improve safety and accessibility for seniors.

These technologies may enable some older adults to live independently for longer periods whilst reducing the risk of falls and other health incidents.

Virtual connectivity tools are also being incorporated into senior living communities. Large-screen video conferencing, virtual reality programs, and AI-powered digital companions are being used to help seniors stay socially connected and engaged.

McKinsey’s report highlighted social isolation remains a concern for older adults, and digital tools could play a role in addressing this issue.

The report also examined the financial performance of the senior housing sector. According to McKinsey, independent retirement communities have outperformed traditional rental housing by 45% in value growth since 2005.

Alternative real estate, including senior housing, now accounts for 13.1% of total US investment volume, up from 8.4% a decade ago.

McKinsey noted private investment in technology-driven senior housing is increasing. Some senior living providers are forming partnerships with AI and digital health companies to integrate new tools into their communities.

The report suggested further collaboration between senior housing operators and technology firms may continue to shape the industry in the coming years.

Whilst technology is helping to address some challenges in senior housing, McKinsey emphasises that digital innovation should be implemented alongside traditional care approaches. AI and automation can assist with efficiency, but personal interactions and in-person caregiving remain essential for seniors’ well-being.

The senior housing industry is expected to continue evolving as demand increases. According to McKinsey, a combination of ageing-in-place solutions, digital healthcare tools, and flexible senior housing models may help address the needs of an ageing global population.