Senior housing market swells
Updated On: Oct 03 2013 02:13:15 PM CDT
(NewsUSA) - America's elderly are one of the fastest-growing segments of the population. As a group, senior citizens over age 85 are expected to double between now and 2030. While people are wondering what Social Security will look like in the coming years, senior housing is another rising concern.
Some families are in a position to shelter older relatives, but those who don't have that option are looking at nursing homes or assisted living facilities. Since assisted living is preferred five to one over nursing homes, it's not too surprising that the market for new properties is expanding.
The demand for assisted living facilities will continue to surge as the population ages. Plus, it's need-driven for elderly folks who can't live alone due to certain conditions, like Alzheimer's. It's this demand that makes senior housing great for investment opportunities.
"Whenever we look at the rapidly aging population in America and the lack of meaningful new construction, we realize how strong the assisted living market will be for the next decade," says Gary Langendoen, senior managing director of Madison Realty Companies. "The opportunity to expand assisted living properties by adding more beds and to include memory care sections in properties provides significant value-added opportunities to this asset class."
Currently, small regional operators own the majority of stable assisted living establishments, or they're of the mom-and-pop variety.