Three Things to Know About Investing in Senior Living

To say the senior housing industry has gone through a lot over the last two years would be an understatement. The pandemic created widespread disruption and left providers, operators, and everyone in between scrambling to adapt. Now, nearly four months into 2022, the industry has not only adjusted to the new normal but embraced it.

Right now, the real estate market is booming, creating a seller's market that is hard to keep up with. Investing in senior housing is different from a single-family home or vacation rental, which is why it's always a good idea to consult an experienced team that understands market trends and can advise you on the best next steps.

Let's now look at three of the benefits of pursuing an investment in senior housing:

Recession-proof 

One of the top advantages of investing in a senior housing facility or assisted living community is that there's little-to-no negative impact when the economy is in a bad place. Unlike other investments that are directly impacted by the stock market, unemployment rates, and world events like the conflict between Russia and Ukraine, senior housing does not run the risk of faltering due to lack of demand.

Good potential for long-term growth and stability 

Millennials may have surpassed Baby Boomers as the largest living generation, but by 2030, all Boomers will be at least 65 years old. This is an estimated population of 73 million. While housing trends have certainly shifted, the fact of the matter is that senior housing communities are - and will continue to be - in high demand. If you recall some of our industry predictions at the end of last year, we expect to see an influx of active adult communities and facilities geared towards the tech-savvy social adult. For investors, this translates to long-term growth potential.

More opportunities and less competition

Commercial real estate was hit hard during the pandemic, and the housing market is unprecedented, opening the door to exciting new opportunities in senior housing. We are starting to see cohousing and active adult communities pop up everywhere, as well as other less conventional environments. This is great news for those getting into senior housing right now, as the market is thriving and not over-saturated with facilities (or investors).

We talk a lot about how the industry has evolved over the years - especially since the pandemic - and this also trickles into senior living investment. We hope the above information helps you understand the benefits of investing in a skilled nursing or senior housing facility. We encourage you to check out our inventory and join our email list to be the first to know about new properties hitting the market. We offer free valuation services and currently have several exciting investment opportunities. To learn more about how the specialists at Sherman & Roylance can assist you and ensure you find the right investment property for your needs, give us a call today.