5 reasons senior housing is (still) a good investment
Senior housing remains an attractive option in 2020 and beyond
For investors in our region and beyond, senior housing remains an attractive investment option. And while many things may feel up in the air these days, there’s one thing that’s for sure: there will be a continued need for senior housing in the Upper Midwest, no matter what happens in the world around us.
Top reasons senior housing is still a solid investment opportunity
So why does senior housing remain a good investment, even in so much uncertainty? There are several reasons, so let’s take a closer look at our top five.
1. The boomers have arrived.
As the baby boomers enter their retirement years en masse, demand for housing that meets their lifestyle preferences is increasing. For many, that means downsizing and simplifying, while still not sacrificing the finer things in life. They’re often looking for senior housing that offers common conveniences and, at times, uncommon amenities too. For the savvy investor, the toughest decision may be whether to invest in upmarket senior housing or the sometimes-underserved middle market for senior housing, which we’ve written about in the past. Bottom line: senior housing can be a great way to build out your investment portfolio with a passive income revenue stream.
2. Solid returns are possible
Investing in senior housing, like many other investment opportunities, may require patience for you to see substantial ROI. However, the returns have been strong, historically, often 12%, 13% or higher per year — even when we’ve experienced economic upheaval. This is an important barometer for how senior housing may fare throughout our current challenges.
3. Interest in alternatives to nursing homes is high
As retirees age, they’re looking for options others than nursing homes. Senior living communities are an attractive alternative and will be well-positioned to capture a growing market that is looking to live independently or with some assistance while enjoying the ease of access to amenities. Experts estimate by 2029, seniors will comprise a fifth of the population, and over the next two decades, more than six million people will be seeking some type of senior housing.
4. The right investment can take up less of your valuable time
If you’re looking for an investment that requires less time and energy from you, independent senior living units may be just what you’re looking for. This type of senior housing is more similar to multi-family housing, and provides less care services to its residents, and can require less of your attention once ready to accept residents.
Scalability is possible
As the senior population continues to grow, so does the potential. And that’s why the senior housing market is expected to continue to grow. Even better, you can scale your business as needs increase: start with a single location, and when the market dictates, build branch locations.
Is an investment in senior living for you?
For several reasons, senior housing is still a good investment opportunity. Of course, there is risk with any investment. Yet senior housing has proven to be a solid investment over the decades, even in the face of economic change. If you’re ready to start planning your next senior housing project, we can help. Our design-build team can take your vision from start to finish with a streamlined approach that is proven to be effective at getting the job done within your budget and timeline. Contact us for more information about building senior housing in La Crosse, Wisconsin and beyond.