6 Reasons to Invest in Senior Housing

Senior housing doesn't generally get as much attention as the trendier real estate sectors like multifamily, retail, office space, and warehouses. That could be at least partially due to most of us not wanting to think about how our needs will likely change as we age. But senior housing is a rapidly growing real estate sector because of the many benefits it offers for a growing segment of the population. Let's look at a few reasons why senior housing is well positioned to become hotter than ever going forward.

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The number of Americans 65 or older now sits at around 45 million. Remarkably, in only eight years, that number is projected to explode to nearly 90 million. If you're a real estate investor, that's a serious population shift you might want to start building into your portfolio if you haven't yet accounted for it.

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Many people moving into senior living communities can't get around quite as well as they used to. Senior living communities are designed to take that into consideration in a variety of ways, from walk-in tubs and lower cabinets to access ramps, elevators, and even meal packages and cleaning. Some even have full-time medical staff available to tend to residents as necessary.

Of course, cost is always a concern for many seniors on a fixed income. Fortunately, senior living communities are being developed to accommodate a wide range of income levels. There's a good possibility that interested seniors will be able to find one they can afford, especially if they've still been living in a now-too-large family home and dealing with all the maintenance that requires.

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A wide array of senior living facilities is available to meet the vastly varying needs of seniors. There are independent living communities for seniors who don't need anyone to take care of them. And for those with extensive medical and personal care needs, there are assisted living facilities. Many senior living communities also market themselves as ideal for seniors who fall somewhere between those two ends of the spectrum, requiring a little help sometimes.

Senior living communities also offer benefits that extend beyond meeting physical needs. Many studies have proven the advantages that people with strong social connections experience in health and longevity, and senior communities can help. They often feature amenities people come together to enjoy, like recreation centers, pools, and gyms. Many of these communities also have full-time activity planners on staff scheduling games, parties, movie nights, potlucks, and other fun activities.

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Senior housing was in no way immune to the struggles most commercial real estate faced at the height of the pandemic. In fact, the socialization factor became something to fear as many residents and staff members fell ill. Some concerned family members even packed up their senior loved ones and moved them in with them. But by late last year, senior living real estate investment trusts (REITs) were already showing increased residency numbers. And that trend shows no signs of slowing.

ALSO READ: Investing in Healthcare REITs

If your real estate portfolio is missing senior living communities, you may want to consider changing that. The exploding senior population and the unique advantages these communities offer make plenty of growth highly likely. Investing in a senior housing REIT can also be a great way to further diversify your holdings.

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