New home lot supply drops to cycle lows
Follow the children. That’s what today’s leading developers of senior housing are doing – focusing on the adult children of America’s 75+ age cohort. Demand for senior housing (defined here as age restricted apartments, independent living, assisted living, memory care and nursing care) is being driven by a large, expanding and aging population base, with more than three hundred thousand people entering the 75+ age group each year. On top of that, the first baby boomers will turn 75 in the year 2021. In fact, the National Investment Center for Seniors Housing & Care (NIC) recently reported that absorption for this type of product continuously outpaced construction starts in 10 of the past 12 quarters (see the graph below), resulting in increased overall occupancy levels. In other words, the senior housing sector has a very attractive growth outlook.
That being said, it is important to also research and define the influence and impact that these seniors’ kids have on their decision to move into a retirement community. Our Vice President of Advisory Jon Cruse is an expert in the senior housing space, and outlined the following key conclusions:
In summary, the senior housing sector is massive and continues to grow. Today’s savvy developers are using market research to identify hidden opportunities by focusing on seniors’ adult children, giving a whole new meaning to “focus on the family”.
Contact us to discuss how we can help you with your senior housing development.
Jon Cruse, Vice President of Advisory Dallas
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