A subset of the overall Senior Housing market, Age-Restricted Senior Living Facilities are housing communities meant for adults aged 55 and older. According to one recent article, such age-restricted senior living facilities are becoming extremely attractive for both real estate developers and investors, as “age-restricted communities, also known as 55+ communities, offer big opportunities at a lower cost and risk to developers looking to get their foot in the door of this attractive market.”
From a demand perspective, there is a significant percentage of the U.S. population that is reaching the age of 55. In order to take advantage of the senior housing market without necessarily including assisted living facilities into one’s investment portfolio, real estate developers and investors are finding that age-restricted senior living facilities present less risk, high demand, and more investment certainty. As one investor has expressed, “with 10,000 people turning 65 every day, [developers] are looking at those numbers and it looks like an attractive time to get into the market [and] the other way of looking at it is over the last several years, senior housing has had relatively strong performance against some of the other real estate categories.”
From a strategic investment perspective, age restricted housing is a viable source of long-term revenue because the demand is largely for the group of baby-boomers who are not necessarily looking for or have a need for assisted living, but rather are specifically looking for this type of restricted housing. “The 55+ housing market is a good opportunity to serve a population of baby boomers [because] these boomers may be interested in a community without a huge entrance fee or and without the need to pay for services they don’t need and don’t want.” As such, the 55+ housing market is a specific subset or gap within the senior housing space, which as its stands, presents a viable long-term investment opportunity for investors and developers alike.
Senior Housing providers are at a very pivotal moment in time, and there are many providers taking economic advantage of the trends among senior residents. 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.