Amid population aging, the senior living industry has become an important sector of the service industry, especially in China. Population control throughout the past four decades has led to the quintessential “sandwich” family, wherein a young couple faces pressure to care for four elderly parents as well as their own child(ren). A lack of proper home care for older adults in China has thus accelerated social and economic demand for senior living institutions (SLIs). Although a growing number of SLIs are being built in the country, occupancy rates remain low. It is therefore crucial to explore why older adults are not accepting SLIs as a solution to their needs. This study broaches this topic by investigating the mechanism underlying the impact of family support for choosing an SLI on older adults’ attitudes toward these institutions. Specifically, a mediation model was proposed to investigate the roles of life satisfaction and older adults’ subjective knowledge of SLIs among 1,723 older Chinese adults. Multigroup path analysis was also carried out to test applicable sociodemographic differences. Findings revealed a significant suppressing effect of life satisfaction and a partial mediating effect of subjective knowledge along with group differences. Overall, this study provides meaningful implications for SLI marketing.