The senior living industry is experiencing growth as a result of demographic factors. Current statistics indicate that individuals are living longer due to improved healthcare, increased education, awareness regarding disease prevention & management, and general technological advancements. According to census data, the population of the United States over age 75 is growing much faster than the general population. The U.S. population 80+ years old is estimated to grow by approximately 633,000 through 2015. The adjacent table shows the population in the U.S. by age cohort in 2009. The most significant period of growth for this age cohort (75+) is expected to occur between 2021 and 2039 when the baby boomers enter this demographic group.
Profiled below are additional points of consideration in regards to the growth of the senior population:
As the sector starts to see a large number of baby boomers reach retirement age, the demographics have never been more favorable for expected increases in demand for senior housing. Unlike other real estate classes, seniors housing continues to grow because of our country’s expanding senior population. In addition, seniors’ attitudes have become increasingly more accepting of the seniors housing, and specifically assisted living, concept. This growth bodes well for investment returns in the senior care space, including assisted living (ALF), memory / Alzheimer’s care (MC), and independent living (IL). Of these care levels, independent living is the least dependent on care issues and is considered less needs driven. Because of this characteristic, independent living has been the most impacted by the recession and supposed recovery. The housing collapse left prospective independent living tenants unable to sell their homes, often preventing them from moving into a facility.