Senior housing – single units, nursing homes, assisted living facilities, and long-term care facilities – are becoming a popular investment option among smart real estate investors.
Here are a few good reasons to consider investing in senior housing.
Why should it matter that Baby Boomers make up the largest segment of the U.S. Population, you ask?
It’s simple. By the year 2035, nearly 80 million Americans will be aged 65 or older. This means that more and more people will be turning to senior housing, creating a noticeable shift in the current supply. So, the biggest reason investors are turning to senior housing as an investment option is simply that the largest segment of the U.S. population will need it.
Many of today’s senior housing facilities are out of date, which means investors can snap them up for cheap, bring them up to date with modern upgrades, and charge higher rents to generate profit.
Secondly, there is a high demand for building new facilities with all of today’s modern conveniences and preferences, which the aging population will appreciate and flock to.
Unlike other types of real estate investment opportunities, senior housing is immune to recession woes. This is because there’s always a demand for it despite the rise and decline of the economy.
Senior housing and the need for it isn’t a new concept. It’s been around for many years, so there are no unexpected situations that may lead to its decline. Unlike a startup like Airbnb or a new concept that must withstand the rigors of competition and imitators, senior housing has a dependable track record for success.
In fact, even with the advent of the Internet, which had a devastating effect on the retail and lodging industries, senior housing continues to thrive as an investment opportunity – only with increased ease in marketing, thanks to the World Wide Web.
The senior housing sector in the U.S. is well-positioned to be a dependable investment opportunity for many real estate investors. It is highly recession-resistant, and there are opportunities for profit in both old and new facilities alike. Senior housing has an outstanding track record of success, which is why there’s renewed interest in the niche.