The senior living real estate market in the United States and Canada is entering a phase of accelerated expansion due to demographic realities. It is estimated that the U.S. market will reach $150+ billion by 2033, driven by a 95% growth in the 75+ population. Canada has a similar demographic trend, which drives a $20 billion estimate for the senior living market. Simultaneously, the sector faces persistent supply shortages.

Despite these long-term trends, it is estimated that new construction rates in the senior living market fell 40% from 2017 to 2023.  Due to this wide gap between demand and new supply, the only way to have any impact on adding capacity is through the adaptive reuse of existing structures. There should be some cost efficiencies in this approach, but decision-makers in this segment must have compelling support from service providers who can respond with confidence and capability.

This market reality, combined with the industry's desire for specialized, de-risked retrofit solutions, creates a significant opportunity for contractors who can bypass traditional General Contractor (GC) channels and deal directly with asset owners and operators.

Shift the Sales Conversation - Target Decision-Makers

To secure business outside GC channels, specialty contractors must align their offerings with the priorities of sophisticated financial stakeholders: owners, REITs, and large-scale operators. This requires a strategic approach focused on winning clients through value-driven propositions rather than competing on price. By targeting decision-makers directly, contractors can lay the groundwork for clients to evaluate proposals based on best value, even if redirected to GCs.

Specialty contractors should emphasize how interior retrofits drive key financial and operational metrics. Decision-makers prioritize Net Operating Income (NOI) growth, expecting 9.5–10.5% annual increases in key segments. Contractors must position retrofits as capital investments that boost NOI through higher occupancy, improved resident retention, and reduced labor costs. While scientific proof isn’t required, compelling arguments around these benefits resonate in the commercial interior design industry.

Operational efficiency and risk reduction are also critical. Labor accounts for over 50% of operating costs in senior living facilities. Thoughtful interior systems, such as seamless surfaces or low-maintenance finishes, can streamline care plans, reduce staff workload, and enhance resident autonomy. Contractors who present these solutions as risk-reducing partnerships gain a competitive edge. Senior living ownership increasingly values resilience and adaptability.

Contractors should highlight how retrofits create "future-proof" spaces that evolve with care trends and resident needs. For example, modular layouts and adaptable flooring can transform common areas from yoga studios to memory care pods. This requires deep industry knowledge and confidence in anticipating end-user needs.

Confidence in Execution

The senior living industry often views retrofits as complex and high-risk. Specialty contractors must counter this perception with compelling marketing, product expertise, and installation proficiency.

By positioning interior upgrades as critical to asset transformation, contractors can address the needs of operators, staff, and residents.

Starnet members, backed by decades of experience and trusted manufacturer partnerships, are well-equipped to meet this challenge. Senior living design has shifted toward boutique, hospitality-inspired communities and hybrid care models. Manufacturers have responded with versatile products that bridge residential and commercial aesthetics, serving as critical infrastructure for brand reinforcement, family confidence, care delivery, and resident satisfaction.

Contractors must propose trending design elements and specialized solutions to secure retrofit budgets. Unlike traditional contractors who target errors with punitive change orders or grumble and criticize inadequate specifications privately, progressive contractors like Starnet members can proactively offer solutions, building trust with decision-makers.

Confidence in Data

Incomplete building data is a major barrier to retrofit success, increasing costs and risks. Specialty contractors, as stewards of interior assets, can leverage tools like Spec-ID and Climit to manage and deliver accurate data. Spreadsheets are prone to errors and poor record-keeping, but digital tools enable precise documentation of installed finishes and systems. This data supports performance tracking, durable specifications, and alignment with corporate brand goals, which are critical for investors pricing retrofit risks. Providing comprehensive, third-party-verified asset overviews enhances client trust and supports long-term sustainability commitments.

Confidence in Process

To earn trust from institutional investors, specialty contractors must standardize delivery and scale expertise. Moving beyond project-by-project approaches, contractors should develop a "Senior Living Interior Retrofit Plan of Work" that streamlines processes and uses clear industry definitions for repositioning levels, distinguishing light refreshes from multi-functional reinventions.

A decision tree model can guide clients through technical due diligence, ensuring the best retrofit path based on existing structures. Fees should reflect the specialized knowledge required for early-stage planning, avoiding the trap of competing solely on price. Starnet members differentiate themselves through credentials, documented training, and formal accreditations.

Hosting workshops, offering continuing education via Starnet University, and creating internal certifications for retrofit systems establish "retrofit fluency" and build trust outside GC channels.

Confidence in Senior Living Market

Progressive contractors aim to create lifelong clients by showcasing data-rich examples of successful retrofits. The contacts to target can be found in just a few minutes online using LinkedIn or a mediocre AI prompt. The only barrier to this lucrative opportunity is a lack of effort or willful resistance to adopting a sales model. Highlighting tangible benefits—such as value uplift, reduced costs, or improved resident outcomes—can shift the industry from risk-averse project pricing to opportunity-driven selling proposals.

By engaging early, offering expertise in finishes tailored to senior living care models, and guiding clients through a structured process, specialty contractors transition from labor suppliers to strategic partners. This approach positions contractors to capitalize on the growing senior living market, delivering retrofit solutions that meet the evolving needs of owners, operators, and residents while driving measurable financial and operational success.