Why Should you be investing in Senior Assisted Living in 2023…and Beyond!Mar 29, 2023
Investing in senior housing could be a profitable opportunity for real estate investors in 2023, given the vast number of potential customers in the aging baby boomer population. The Population Reference Bureau estimates that there are currently 76 million baby boomers in the U.S., with the youngest members in their mid-60s and the oldest approaching their mid-70s.
According to the “National Investment Center for Seniors Housing & Care,” senior housing is a "crisis-resilient" investment option that saw positive rent growth during the Great Recession, making it a reliable investment choice that can weather economic downturns. This is because tenants depend on the amenities and services offered, and the demand for senior housing is expected to grow rapidly over the coming years.
Investing in senior housing has several benefits. Firstly, there is currently a low supply and high demand for senior housing, with 10,000 Americans turning 65 daily, according to the American Senior Housing Association. ASHA predicts that between 2021 and 2040, seniors will need 60,000 to 100,000 new housing units per year on average, indicating a significant opportunity for opportunistic real estate developers.
Additionally, the senior housing market has limited competitors as most real estate investors focus on industrial and new home markets, meaning that investors can purchase properties at lower prices due to little competition.
Furthermore, senior housing allows for long-term residency, resulting in higher occupancy rates and properties with continuous cash flow, as older people are more likely to live in the same place once they have established roots there.
Finally, senior housing offers tremendous growth potential, given the rapidly aging baby boomer population. As a wise real estate investor, you may anticipate that demand for housing among older tenants will continue to rise over the coming years.
In conclusion, investing in senior housing could be a wise investment decision in 2023. By taking advantage of the expanding baby boomer home market and considering the benefits and factors discussed above, real estate investors can make a substantial profit in this market while also making a positive impact on the lives of the elderly.
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