3 Baby Boomers and Diversity Much discussion about demographics in the senior living industry has been related to the incoming wave of Baby Boomers, people born between 1946 and 1964. As an age cohort, in 2012 the 76 million Baby Boomers are predominantly Caucasian (72%), followed by Black (12%), Hispanic (11%), Asian (5%) and other races (1%). Diversity, Income and Senior Living Choices Regarding median household incomes of the age 65+ population, Caucasians and Asians have the highest annual median incomes at more than $41,000. Asians have the highest median annual income for any age strata older than 65 with $74,239 at age 65 to 69. Income is likely a significant factor influencing housing choices for seniors today. Many couples or individuals moving to an independent living, assisted living or memory care community will sell or rent their home to create more liquidity or cash flow. In 2013, there were 21,640,000 homes occupied by an owner (or owners) age 65 or older. Of those, 84% were owned by Caucasians, 8% were owned by Blacks, 6% by Hispanics and 2% were owned by Asians. Community Leadership Insights Broadmead Continuing Care Retirement Community, Cockeysville, MD —Excerpts from an interview with Arthur M. Boyd, Trustee Opened in 1979, Broadmead operates under the guidance and ownership of a Quaker-guided, not-for- profit corporation. Broadmead actively supports its commitment to improving overall diversity within the community by: digitally “pushing the limits” on diversity on its website by showing as much diversity among residents’ photographs as Fair Housing Act rules allow; advertising in local newspapers that reach African American and Jewish communities; hosting speakers of diverse backgrounds to educate residents about other cultures—whether or not they represent a target demographic; and creating and maintaining a robust internal “diversity and inclusion workgroup” composed of residents, board members and executive staff that is working hard to develop a welcoming climate. Creating a more diverse community is a challenge, and some of the community’s marketing tactics have not necessarily worked. But over time Broadmead has become more religiously diverse, with a significant number of Jewish residents, as well as several same- sex couples, African American and Asian residents. Mr. Boyd does not believe that the cost of the community is a significant factor limiting diversity at Broadmead. He believes the challenge is “…getting people to think about moving to Broadmead.” Source: U.S. Census Bureau, Current Population Survey, 2017 Annual Social and Economic Supplement. HINC-02. Age of Householder-- Households by Total Money Income in 2016, Type of Household, Race and Hispanic Origin of Householder. https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-hinc/hinc-02.html#par_textimage_12 Households by Total Money Median Income (2016) Caucasians Hispanics Blacks Asians 65 years and older $41,852 $30,821 $30,821 $41,372 65 to 69 years $57,027 $39,260 $31,563 $74,239 70 to 74 years $47,051 $31,308 $25,957 $44,706 75 years and older $32,203 $23,797 $22,417 $26,283