While demand is growing for senior housing, supply has dwindled as a result of the housing market collapse, so the companies who have stuck with development are poised to benefit from the housing needs of America’s aging population, a New York Times article reports.
Most of these developers are small- to mid-size regional operations that are familiar with their local markets, had a strong portfolio before the crash in 2008, and have been able to persuade banks to keep financing development, says the NY Times.
Senior housing supplies have gone from a surplus, at the height of the housing boom, to a shortage, following the market bust. The number of Americans aged 65 or older is expected to double to 71 million by 2030, and many of those seniors will need care as they age.
“It’s a great time to develop senior housing,” the NY Times quoted Marilynn K. Duker, the president of Brightview Senior Living, as saying. “As long as we can continue to get capital and have the ability to afford it, it’s an opportunity and there isn’t a lot of competition.”
New construction starts in senior housing have dropped by 53% since the housing market crash and now make up barely more than 1% of the senior housing inventory each year, according data from the National Investment Center for the Seniors Housing and Care Industry, the NY Times reports.
The article provides information on some companies who are developing assisted living facilities, and the experiences they’ve had in terms of financing in the past few years.
Go here to read the full article.
Written by Alyssa Gerace