A new report from CBRE, a commercial real estate services and investment firm, indicates that real estate investors are becoming more and more interested in the senior housing market. According to the survey, investors are now turning their interests to nursing homes, assisted living facilities, and other long-term care facilities. These ‘alternative’ properties will present numerous opportunities for investors in 2018. As we’ve discussed at length, the senior housing industry is undergoing monumental changes right now, something that can be seen through new investment opportunities.
One of the most interesting takeaways from the CBRE survey is that approximately 20% of those polled said they were currently pursuing various investments in senior housing. The fact that a quarter of real estate investors polled have interests in senior housing speaks a lot to the current market. In addition to the 20% interested in senior housing, 19% of respondents said they already had some type of investment in senior living. There are several key factors that have contributed to this increased interest, including the fact that risks are low and forecasters predict the senior housing market to continue to grow and expand.
Why is Senior Housing So Attractive to Investors?
In addition to the fact that the senior living industry is undergoing substantial change, there are several reasons why real estate investors are currently motivated by the industry. For one, investors say they are intrigued by the chance to benefit from the many structural changes presented by the evolving senior living industry. While other trends may come and go, there will always be a need for long-term care facilities for our senior population. This means that senior living is one industry you can count on to be around forever. Investors often view senior housing as “recession proof” because our aging population will continue to need medical and health care services, regardless of what’s going on with the economy.
Right now I am at the 2018 NIC Spring Investment Forum in Dallas, which is one of the most anticipated events of the year. I look forward to meeting current senior living investors and connecting with others who are interested in investment opportunities. If you are at the conference or would like to connect with me March 7-9th, please send me a message or give me a call.