According to the US Census Bureau, 16% of the population of the US are senior citizens who are people over 65 years of age. This statistic concerns potential real estate investors. Why? With over 65 million seniors looking for ideal living arrangements, it is a golden opportunity for real estate investors to invest in properties that cater to their accommodation needs. So, to help you decide whether to invest in senior housing, here are the four benefits of investing in real estate for this giant demographic.
4 Reasons to Invest in Senior Housing Units
1. Rising demand, low supply
From the statistics of 2021, American Senior Housing Association (ASHA) has estimated that from 2021 to 2024, more than 60000 new housing units will be needed on average for accommodating senior citizens annually. However, the current housing supply does not meet the increasing demand for senior housing requirements. If you consider this, either as a developer or an investor, you can earn a tidy sum in the real estate market by taking advantage of this opportunity.
2. Different options available
There are different types of housing that you can consider when investing in senior real estate. You can choose to invest in continuous care facilities like nursing homes or age-restricted residential properties. There are plenty of profitable options available and you can research different types of senior housing formats to choose your next investment venture. The properties that offer intense medical care for senior citizens are the nursing homes. These properties are equipped with medical alert systems, and if you can manage to build a home with the required facilities, you can reap profits. You can invest in age-restricted residences by purchasing condos or apartment complexes. This type of senior home is categorized for self-sufficient seniors, and you do not have to worry about providing medical services.
3. Higher potential
According to the survey by ASHA, every day, 10,000 people become senior citizens (turning 65 years and above) in America. This consistent increase in the aging population ensures greater potential in real estate senior housing. As a real estate investor, you can rely on the growth potential of this demand for senior housing over the next decades and expect the rising demand of older tenants requiring housing.
4. Occupancy rates are better
A great advantage of senior housing is that it presents a long-term occupancy of the tenants. Seniors do not like to change environments easily, so once they like and agree to a place, they are likely to settle and spend their golden days. This ensures consistent cash flow, and you are likely to have higher occupancy rates for your properties.
My parting thoughts –
If you are wondering whether investing in senior housing is the right for you, you can find the answer by acquiring insights about investing in real estate for this demographic. You have the chance of breaking into an untapped market where you can rely on the guaranteed growth potential.
