This blog post is a summary of a recent project completed by Research & Marketing Strategies, Inc. (RMS).
Background: An organization aiming to offer residential living services in New York State recently partnered with Research & Marketing Strategies, Inc. (RMS) to conduct feasibility research. The client wanted to better understand the primary market area (PMA) and identify whether it is feasible to open a facility in the proposed location. The market research objective was to provide decision-making insights needed to determine whether there is sufficient demand for an adult home at the location.
Approach: To identify demand in the PMA, the RMS Analytic team used secondary research to assess the defined PMA demographics. This included population growth in the targeted age group, gender, marital status, income, and current housing information. RMS reviewed industry trends for like facilities and incorporated those findings in the final report to determine how they will impact the facility. RMS also obtained state provided occupancy rates for similar complexes in the PMA. To assess supply in the PMA, the RMS Analytic team completed a competitive assessment which provided competitor information such as service offerings, rates, private pay information, and occupancies. Fieldwork lasted approximately two weeks. Following the data collection and analysis period, a comprehensive report was delivered to the client, which included a visual dashboard of the findings, as well as next steps and recommendations.
Results: Here are some highlights of the study’s findings:
- Within the PMA, the general population size is not expected to change significantly over the next five years. The number of households is only expected to increase by about 1% over this time period. Of interest is the fact that the population age 65+ is expected to increase by approximately 15% over the next five years.
- The median age for the PMA has been increasing for the past 16 years. Those between 65 to 74 years old are expected to see the largest growth over the next five years, with a nearly 19% increase.
- The typical adult home unit was defined for the client, to provide insights during the facility layout development phase. The standard configuration among competitors was defined, as was the known layout information for the spaces within the facility beyond the living space (such as common areas, dining halls, and recreation spaces). Key amenities for the living space as well as other locations within the facility were identified to provide key daily life enrichment information.
- The RMS Analytics team indicated the number of competitor facilities in the PMA, and specified the total number of operational beds as well as occupancy rates.
RMS is a full-service market research firm located in Syracuse, NY. If you are interested in learning more about our research capabilities, please contact Sandy Baker, our Senior Director of Business Development & Corporate Strategy at SandyB@RMSresults.com or by calling 1-866-567-5422. Visit our website at www.RMSresults.com.