For years, #SeniorHousing has underperformed for #CommercialRealEstate investors, but the tides are shifting. With 4+ million more seniors (ages 80+) expected by 2030, demand is about to skyrocket—yet supply isn’t keeping up.
The Mortgage Dilemma:
Since 1998, the percentage of seniors 65+ with a mortgage has jumped 11 points to nearly 38%. Many are holding onto sub-4% interest rates, making them hesitant to move—while lenders are eager to see those loans paid off. What if lenders offered discounted payoffs? Unlocking consumer buying power could help seniors afford high-cost living options without requiring a lender write-down. A true win-win solution.
🏠 The Problem? Demand is surging, but supply isn’t keeping up. Senior housing development stalled during the pandemic and hasn’t recovered. At the current pace, we’ll only add 191,000 units by 2030—far short of the 560,000 needed.
🏠 Aging In-place Is The FUTURE:
More seniors will choose to stay put, driving demand for telemedicine and on-site services (and home services) in their communities. The industry must adapt by delivering more support directly to them.
📊 Senior Housing Isn’t Just Another Asset Class:
Investors, operators, and developers must have best-in-class management to navigate the complexities. This sector isn’t multifamily—balancing resident priorities, operating margins, and asset profitability requires top-tier operations and asset management teams.
📈 The Market Reality:
Simply waiting for lower interest rates and a capital market rebound isn’t a strategy—it’s a risk. The 560,000-unit shortfall by 2030 means those who adapt now will be positioned for long-term success.
🚀 The future of senior living is being shaped today. How should investors and policymakers respond? Drop your thoughts below! ⬇️
🔗 Read more of this WSJ Article: (https://on.wsj.com/3EA8ScK)
#RealEstate #SeniorLiving #SeniorCare #SeniorHousing #BoomerGeneration #BabyBoomers #AgingInPlace #Aginng #Investment #HousingCrisis #AgingInPlace #MortgageSolutions #Telemedicine #AssetManagement #GenerationalWealth
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