How Ultra-Wealthy Investors View Senior Housing Real Estate

The world’s wealthiest individuals see great potential in senior housing—though it’s far from the most popular real estate property type these investors currently prefer, according to a recent research report from National Real Estate Investor (NREI).

The report was based on an online survey sent to NREI readers in November 2016. The survey garnered responses from 400 individuals, 24% of whom said they were in leasing and/or investment sales, 30% of whom are private real estate investors, 21% of whom are building owners/developers and 20% of whom are building owners/managers.

Approximately 19.53% of survey respondents said senior housing was a preferred property type of high-net-worth investors, the report reveals.

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Multifamily was the most preferred property type by a landslide, however, with 67.19% of respondents claiming that asset class was a top pick for high-net-worth investors.

The super wealthy aren’t looking to invest just anywhere. Instead, ultra-high-net-worth investors will be concentrating in the Pacific Northwest, Texas, California and certain Northeast and Southwest markets between now and 2020, the NREI report says, citing a Savills report titled “Where Is Smart Money Going.” Cities in these regions are driven by fast-growing local populations, the knowledge economy and, in many cases, a burgeoning tech industry, the Savills report indicates.

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The most likely event to shake high-net-worth individuals’ interest in real estate is a real estate downturn, according to 45% of survey respondents. A change in the tax code, rising interest rates or a broader recession could also shake interest, according to 35%, 36% and 39% of respondents, respectively.

Written by Mary Kate Nelson

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