A recent article highlights how scores of younger real estate investors are looking to take advantage of the increasing and aging Boomer generation’s demand for senior and living assisted facilities. In terms of real estate investing, such perspective is in contrast to other generations that have viewed real estate investing as buying and flipping foreclosed properties, investing in apartments, or even purchasing a second home. Since the Great Recession though, younger generations have and remain soured over the prospect of real estate investing in traditional methods and have since looked to sources of real estate investing that have the following characteristics:
- Stable and consistent supply and demand;
- Less risk; and
- The opportunity for higher projected growth and development.
For younger generations, real estate investments in the Senior and Assisted Living facilities sector typically fulfills such requirements. In terms of stable and consistent supply and demand, according to the article, the first members of the boomer generation began turning age 65 in 2011 when
“boomers numbered 79 million, accounting for 26% of the U.S. population [and] beginning in January 2011, the report estimates that about 10,000 boomers would be turning 65 every day for the next 19 years.” Additionally, younger generations are finding that investing in these types of real estate projects is substantially less risky than traditional real estate investments, especially considering that residents of such living facilities are committed to them for the remainder of their lives and are seeking stability as opposed to other forms of housing. In contrast to other forms of housing, senior housing and assisted living facilities represent an incredible opportunity for both growth and development, especially since the majority of boomers will require such housing within the next few years.
Senior Housing providers are at a pivotal moment in time, where there are many providers taking economic advantage of the trends among senior residents to seeking housing and care facilities. Cambridge Realty Capital is versed in a variety of investments in the senior housing market. Our experience and expertise make us a leader in the investment world.