As in nearly every industry, Artificial intelligence (AI) is poised to transform the senior housing and skilled nursing real estate industry. AI-powered technologies can help operators improve residents' quality of care, reduce costs, increase operational efficiency, and make the right decisions regarding their investment strategy. The senior population is increasing in the United States. By 2030, there will be an estimated 73.7 million Americans over 65, up from 52.3 million in 2018. This growth creates a significant demand for senior housing and skilled nursing care.

Artificial Intelligence in Senior Housing Investments

Here are some of the ways that AI is being used in senior housing and skilled nursing real estate investments:
  • Personalized care: AI can track residents' health data and provide customized care plans. This can help ensure that residents receive the care they need when needed. For example, AI can monitor residents' vital signs and alert staff of changes. AI can also remind residents to take their medications or participate in activities.
  • Operational efficiency: AI can automate scheduling appointments, ordering supplies, and managing inventory. This can free up staff time to focus on providing care to residents. For example, AI can be used to develop algorithms to predict when residents need appointments or supplies. AI can also track inventory levels and automatically order new supplies when needed.
  • Investment strategy: Real estate brokers increasingly use AI to find more suitable properties for their clients. AI can help brokers compile and compare information more efficiently, leading to better matches between buyers and sellers. For example, AI is used to determine the market value of a property, which can help sellers set a fair asking price. AI also identifies properties that meet a buyer's specific criteria, such as the desired location, size, and price range.
The use of AI in senior housing and skilled nursing real estate is still in its early stages, but it can potentially revolutionize the industry. AI-powered technologies can help improve residents' quality of care, reduce costs, and design a better investment strategy. As AI continues to develop, we can expect to see even more innovative ways that it can be used to improve the lives of seniors. Sherman & Roylance Real Estate Investment Services can help you find suitable properties for your portfolio if you are interested in investing in senior housing or skilled nursing real estate. We have a team of experienced professionals who can help you assess the risks and opportunities in this rapidly growing market. Our team of professionals is on the cutting edge of AI technology and utilizes their combined expertise to apply the new technology to serve our clients best.

How To Use AI in Senior Housing Real Estate Investing

Sherman & Roylance uses artificial intelligence to design investment strategies in a multitude of ways:
  • Identifying undervalued properties: AI analyzes large amounts of data, such as property listings, market trends, and historical sales data. This data is used to identify properties that are undervalued or have the potential to appreciate in value.
  • Automating property management tasks: AI is used to automate tasks such as scheduling maintenance appointments, managing resident leases, and collecting payments. This can free up time for administrators to focus on other tasks, such as marketing and leasing properties.
  • Predicting rental rates: AI analyzes historical rental data and market trends to predict future rental rates. Operators use this information to set rental rates that are competitive and profitable.
  • Managing risk: AI is used to assess the risk of a senior housing real estate investment. This can be done by analyzing factors such as the location of the senior housing facility, the resident or patient mix, and the overall economic conditions.
  • Making investment decisions: AI can analyze all the available data and recommend commercial real estate investments. This can help investors to make more informed and profitable decisions.
In addition to these specific applications, AI is also being used in a variety of other ways to improve the commercial real estate investment process. For example, AI is used to develop virtual reality tours of properties, create chatbots that can answer investor questions, and automate the due diligence process. As AI evolves, we will see even more innovative ways to use this technology to make commercial real estate investments. Here are some examples of how AI is being used in commercial real estate today:
  • Proptech companies like VTS and Yardi use AI to automate property management tasks, such as scheduling maintenance appointments and collecting rent payments.
  • Real estate investment firms like BlackRock and Blackstone use AI to identify undervalued properties and make investment decisions.
  • Developers like Hines and Related use AI to design and build more efficient and sustainable buildings.
We will see even more innovative ways to use this technology in commercial real estate as AI develops. For example, AI could create personalized marketing campaigns for commercial real estate properties, develop predictive models for rental rates, and even automate the leasing process. If you are considering investing in commercial real estate, it is essential to stay up-to-date on the latest trends in AI. By understanding how AI can be used to improve the investment process, you can make more informed and profitable decisions. Sherman & Roylance can easily walk you through the entire process of investing in senior housing and skilled nursing facilities.