The Silver Tsunami is a subject we often talk about in our blog and with good reason! By the year 2050, nearly 20% of the United States population will be 65 or older, compared to 15% today.
There is a significant part of the population entering their senior years, and experts are contemplating what the increase in the aging population will mean for the workplace, economy, healthcare, and senior living.
The Importance Of Senior Living Facilities
As you might have guessed, senior living facilities will play an important part in the years to come. There’s a whole new generation that is currently developing needs that dictate the demand for living spaces in which they can have the commodities and technology they grew accustomed to.
Assisted living facilities are such spaces, providing care for those who require ongoing or extenuating physical or medical attention or rehabilitation therapy. Memory care homes, on the other hand, specialize in caring for people with various forms of dementia, such as Alzheimer’s.
While most assisted living facilities focus on serving seniors, care can be provided to anyone who may have mental or physical disabilities. Care can include helping residents use the bathroom, get dressed, bathe, take medication, and provide meals.
The best senior living facilities and memory care homes typically provide secure and safe environments, with better staff-to-resident ratios. Such places are able to closely monitor the well-being of each resident and offer specialized programs, activities, and events that support cognitive abilities and promote physical activity so their residents can stay happy and active.
Enter The Silver Tsunami
With the increase in population, there will be an increase in demand and the senior living industry will have to expand to meet that demand. Expect to see senior living communities popping up all over the country – not just in typical retirement states like Florida and Arizona. Many seniors are moving away from these states and halfway back to their home states.
As the demand for senior living increases and the boomer generation raises the standard of senior living, we can expect to see more options and personalized care. From concierge services to transportation and even customized care offerings, Senior Living in the future will continue to move away from institutional care toward a true sense of home and community.
The Best Time To Invest In Senior Housing Is Now
As we pointed out in our silver tsunami article, investors are excited by the prospects for senior homes. According to a survey conducted in late August 2019 by Marcus & Millichap in collaboration with National Real Estate Investor, 55% of investors consider now the time to buy senior housing assets, trumping all other property types, while 76% of investors in the sector believe the value of the properties in their portfolio will grow 12 months from then.
Another thing to consider is the effects of the pandemic on the housing trends of the population, with more people willing to move closer to relatives or spend the necessary funds to ensure their loved ones have everything they need and are properly taken care of.
To meet this demand, ground-up real estate projects are probably the best long-term investment you can make to build your wealth. As we point out in our guide, ground-up construction offers unlimited flexibility. It allows for building customization so that a building can better meet the needs of its purpose.
For instance, if the building is intended for an assisted living facility, it can offer proper living spaces for the elderly, plenty of space for leisure, and accommodation of certain special needs, all of which can be planned ahead of the construction.
Also, depending on the nature and volatility of the local real estate market, ground-up construction can sometimes be cheaper than a renovation simply on account of avoiding costly problems or the need to modernize outdated components so that they match current codes.
Another important benefit is the option to grow out a building in stages. Using the same example as before, an assisted living facility can easily be built upon if it eventually requires expansion due to a need for more tenants.
In short, as your business grows more, so can your building. If you invest in Senior Living now, you will be prepared for the silver tsunami when it comes, providing proper living spaces for those who need it while building enough wealth to live your retirement years in peace instead of trading your time for money
If you’re interested in learning more about real estate investing and syndications, be sure to subscribe to our newsletter. We share useful content like this article that can help you understand and start with syndication and passive investing.