Senior Housing Demand Continues
Today’s seniors are seeking out community and less traditional housing models, thanks in large part to the pandemic. As we know, senior living was one of the industries most affected by COVID-19. Not only were residents left in isolation, but operators continue to grapple with staffing woes and supply chain challenges. However, with lumber prices falling, development back on track, and occupancy on the rise, the industry is poised for a rebound. This is not only a good sign for older adults, but investors and developers.
Housing Trends Shaping the Future of the Industry
Over the last several years, many seniors have had to reevaluate their priorities and make decisions based on the current climate and housing market. In fact, many seniors are choosing to sell their homes thanks to the hot housing market.
What does this mean for the senior housing industry?
For one, the age of seniors looking for senior living communities has dropped. According to the National Investment Center for Seniors Housing & Care (NIC), occupancy is now at 81% and the average age of incoming seniors is 79, down from 84. As mentioned above, Baby Boomers are making the decision to put their homes on the market sooner than later. Rather than waiting for a medical emergency or until something goes wrong, older adults are making the decision to seek out community-based housing options now.
While labor challenges continue to impact the industry, its critical operators take the appropriate steps to obtain and retain staff. With construction back on track following a hard stop in 2020, industry experts expect a ‘window of opportunity’ for many of these projects to be finished.
Active Adult Communities Driving the Sector
The rise in popularity of active adult communities is one of the biggest changes to come out of the pandemic. We currently have a 100-unit active adult community for sale in Upstate New York with a motivated seller. This is a great opportunity to get into the growing market with a highly profitable return.
After more than two years of meeting the challenges brought on by the pandemic, senior housing operators have enough experience to respond quickly and adapt. Shayleee Green, Sherman & Roylance’s Montana and Pacific Northwest representative, tells us that market is also growing, as many adults are leaving California and seeking out other living opportunities.
The Sherman & Roylance team (Shep Roylance, George Bingham and Jack Osteen) will be attending the 2022 NIC Fall Conference taking place Sept. 14-16 in Washington D.C. We hope to see you there and look forward to discussing some of the trends shaping the senior housing market, and assisting with any investment or other opportunities. As a reminder, our team will also be in attendance and is available to answer any questions about the growing southeast market.