Senior housing investments in 2024
This is the year to invest in senior housing. Here’s why.
Timing is an essential consideration for any developer, regardless of the type of commercial construction in the works. But when it comes to senior housing investments, whether you’re considering entering the senior housing market for the first time or expanding your current senior living community portfolio as a developer or investor, 2024 looks like a great year to take that next step. Several factors are at play now and in the coming years that are likely to have a role in your decision-making process, none of which should be overlooked. So, let’s examine those factors that are helping 2024 shape up to be a year for investing in senior housing.
Assisted living and senior housing investments warranted by several trends
We’re coming off some turbulent times, fraught with economic uncertainty, public health concerns, labor challenges, and inflationary pressures. Each of these alone has had an impact on the senior housing market. But many of these pressures are changing in scope or fading, and that presents an opportunity for investors and developers. Here are a few components of the social and economic landscape where we are seeing seismic shifts that just might open the door to the next chapter in senior living solutions.
- Weather forecast: the Silver Tsunami is upon us.
The baby boomer generation has reached retirement age, and that means the demand for senior housing is growing, year over year, a trend that shows no sign of slowing for decades to come. The industry needs to answer with a tsunami of development to meet the exponentially growing demand for everything from independent living to skilled nursing. Yet inventory growth remains comparatively slow, which means demand for what’s available is high now and is expected to remain high in the coming years.
- Recession obsession? Not senior housing investors.
While there’s still some buzz about a possible recession that has not come to fruition here in the states, senior housing stands strong regardless of the economy’s direction. When the economy falters, it inspires many to downsize and move into senior housing. Senior living communities are valued in financial downturns as they frequently represent a convenient, practical, cost-effective solution for seniors ready for the next step.
- Promising investment returns.
Long-term, senior housing investment returns tend to be promising. One recent report illustrated the average yearly return on senior housing investment over the last decade was 11.4%, according to the National Investment Center on Seniors Housing & Care.
Success in senior housing investments is within reach
The senior housing industry is ripe with opportunities for investors who are savvy and ready to make the most of this moment. If it’s time for you to build the future of senior housing, let’s work together to make your project a success, starting with our robust design-build predevelopment services. From concept to completion, we’ll deliver your senior housing commercial construction project so you can answer the growing demand for senior living solutions in the 7 Rivers Region and beyond.