Italy discovers ‘silver housing’ as elder care buckles

As Italians live longer and traditional family care weakens, growing numbers of sprightly seniors are tempted by new residential developments — known as “silver housing” — that promise independence with community life and services. These residences, common in the United States and northern Europe, are only now gaining a foothold in Italy, offering a business opportunity for property developers and a welcome option for a swelling cohort of relatively well-off ⁠pensioners.

“I used to live with my son's family, but they were out for work and school most of the day and I was home alone with their dog," said Umberto Giuggiarini, 85, who lives at Aris Senior Living, a Rome residence managed by a group called “Over.” "At the end of the day my voice was weak because I hadn't spoken for so long," he said. The Aris complex, like others springing up around Italy, aims to bridge the gap between living at home and traditional nursing facilities which cater mainly for those requiring continuous medical care or assistance.

Maria Arena, 87, said it took her two years to opt for Aris after a negative experience in an old people's home. "There were so many people in ⁠wheelchairs, it was depressing," she said. The market potential for the residences is bolstered by Italy's rapidly ageing population and one of the world's highest life expectancies, at around 82 years for men and 86 for women.

More than 24% of Italians were 65 or older last year, according to statistics bureau ISTAT, a share seen reaching 30% by 2035. Those living alone are projected to reach 6.5 million by 2050, or 11% of the population. As households become smaller and more fragmented, Italy's time-honoured model of intergenerational support within families is breaking down. Women are having children later and couples are finding it nearly impossible to juggle between caring for their offspring and their elderly parents.

The impact on state finances is considerable. Italy spent 31 billion euros ($35.70 billion) in 2021 to support the elderly in healthcare facilities, a study by Italian bank Intesa Sanpaolo on the silver economy showed, with outlays steadily rising.

"Stimulating the autonomy of older adults while improving their quality of life is essential to ensure the sustainability of the national welfare system," the report said. "Miss home? Why would I? I came here to live better. There is always someone around and I am always in company," said 79-year-old Bruna Bruni, another guest at Aris Senior Living. With ⁠monthly prices ranging between 1,500 euros and 4,000 euros, most of Italy's senior living projects are located in central and northern regions where income levels are higher than in the south.

On average Italian pensions don't exceed a net 1,500 euros, meaning the silver housing option is out of reach for most. Some traditional nursing homes, on the other hand, are provided free by the state.

While people generally move into senior residences on a long-term basis, others, like 102-year-old Marisa Bruni, alternate between the facilities and their own homes. "I holiday in Rome three months a year but still keep my home in Milan. It's the best way to spend old age," she said. Residences are not struggling to fill units, but operators are still in the process of winning over a culturally conservative market, with a deeply rooted preference for family-based care, especially in the more traditional south. "We have waiting lists, confirming a growing demand that is still not fully met by the market," said Mariuccia Rossini, founder and CEO of Over, which is based in Milan and operates five facilities across Italy.

Investors see a clear ⁠growth opportunity. People over 60 generate an estimated 20-30% of Italian gross domestic product, while over-50s hold the majority of the country's financial and real estate wealth, according to an analysis by PwC based on ISTAT data.

Italian state lender Cassa Depositi e Prestiti's unit Real Asset is partnering with state pension agency INPS, Rome's Gemelli Hospital and Investire SGR for a 130-million euro project to convert nine buildings in the Italian capital.

In Milan, real estate investment manager ⁠Hines and other partners are redeveloping a former racecourse to build 300 senior flats, while international real estate group Dils is selling another 87 flats in a separate housing development. Silvana Vitacolonne, 90, rents out her Rome apartment to contribute to her fees at Aris. Fellow guest Giuliana Gorini decided to move in after calculating all her domestic bills and cleaning costs at home. "In the end living at home was more expensive for me than coming here. I ran the numbers and said 'that's ⁠it, I'm staying' (at Aris)," she said.

Reuters