Three weeks on from the annual ARCO conference, here’s my big three takeaways from the day:

1.  A new acronym. Throughout the conference, reference was made to “IRCs”– being Integrated Retirement Communities. Interestingly, this term was created in consultation with older people, with the “I” highlighting the importance of integrated lifestyles, well-being and care, as well as integration with the wider communities. The term IRC is intended to replace the plethora of overlapping and sometimes contradictory descriptions used in the sector, including retirement communities, housing-with-care and independent living.
2. Grey storm rising. It is predicted that by 2038 there will be an extra 396,000 older people in the care system. A preview of the findings of the Mayhew Review highlighted the stark difference between the number of houses projected to be built and the demand (dictated by an ageing population). Staggeringly, Mayhew concludes that 50,000 homes per year will need to be built from 2020-2040 in order to adequately cater for demand. 
3. Opportunities for developers. Given Mayhew’s conclusion, it’s clear that there is ample opportunity for investment in the IRC sector. Unsurprisingly, according to the JLL IRC Investor Sentiment Survey the most important reason investors gave for investing in IRCs was the good supply/demand dynamic. Additional reasons important to investors were the exposure to structural and demographic change and achievable returns.

The backdrop of an ageing population means the IRC sector has its work cut out!