Building forward with resilience, clarity and purpose.
As we look ahead to late 2025, I find myself reflecting on how dramatically the landscape has shifted since the start of the year—not just in our corner of the design world, but globally. At StudioSIX5, we work closely with developers, operators, and architects across the country, and we’re constantly listening for the subtle signals that tell us where the senior living industry might be headed next.
What’s clear is that this year continues to be one of dynamic change, resilience, and recalibration, both domestically and around the globe.
Early 2025: A Strong Start Fueled by Renewed Momentum
The year kicked off with unmistakable energy. Projects that had been paused in prior quarters finally moved forward, and we saw new developments breaking ground with confidence. After a prolonged period of uncertainty, it felt like momentum was back—and it was contagious.
There’s still a great deal of pent-up demand in the market. But as Q2 unfolds, many clients are taking a “wait and see” approach. Uncertainty in equity markets and persistent caution among banks has made access to capital tighter, especially for large-scale, long-horizon developments like senior living.
This hesitation isn’t isolated. Across industries. from commercial real estate to manufacturing, leaders are navigating similar questions. Global interest rate fluctuations, inflationary pressure, and geopolitical instability are dampening short-term confidence, even as long-term need remains strong.
Costs, Tariffs, and the Rising Complexity of Procurement
At the start of the year, we were optimistic. Construction costs and furnishings had started to stabilize. Lead times were improving. It felt like we were finally turning the corner after years of disruptions.
But the second quarter brought a curveball. New tariffs have disrupted pricing across the board—not only on imported materials, but also on domestic goods that rely on globally sourced components. This isn’t just a blip; it’s part of a larger pattern of deglobalization and regionalization that’s reshaping how supply chains function worldwide.
Developers and contractors are struggling to price projects with confidence. With uncertainty surrounding both availability and future costs, many are rethinking how and when to commit to procurement.
At StudioSIX5, we’ve adapted quickly. We’re now building multiple budgeting scenarios and, when feasible, accelerating purchasing to stay ahead of additional tariff hikes. Agility in procurement has become a design strategy in its own right.
The Role of Global Trends in a Local Market
While our work is mainly rooted in North America, we’re increasingly influenced by what’s happening abroad. Cross-border capital—particularly from Europe and Asia—is once again exploring U.S. senior housing as a demographic-driven investment opportunity. This influx, once stabilized, could help ease some funding constraints our clients currently face.
Additionally, labor shortages and immigration shifts continue to influence the availability of skilled trades and caregiving roles—two key factors that impact how we design, staff, and operate senior communities.
Clients are asking more frequently about energy-efficient materials, and long-term operating costs. These values are becoming economic considerations, not just moral ones.
What’s Next for Senior Living Interior Design?
Despite current headwinds, the need for senior housing—both new developments and renovations—remains urgent and undeniable. Our aging population isn’t slowing down. The challenge now is to balance today’s uncertainty with tomorrow’s opportunity.
There’s still a lot of behind-the-scenes planning underway. Communities are exploring creative financing. Teams are reassessing timelines, scopes, and phasing strategies. And design partners like us are adjusting how we support projects with more flexibility and foresight than ever before.
Once macroeconomic and geopolitical tensions begin to ease, we believe the momentum we saw at the start of the year won’t just return—it will surge forward with even greater clarity and purpose.
At StudioSIX5, we remain optimistic, prepared, and fully engaged in helping our partners navigate what’s next.