Asset Class
Senior living is an asset class with high potential for investors who want to respond to demographic change and the growing need for specialized residential and care facilities. The combination of strong demand, a low level of new construction and the relative stability of the sector makes it an attractive option for long-term investments.
Senior living in the USA: Attractive investment environment for long-term returns
The growing demand for senior living facilities in the USA is currently opening up attractive opportunities for real estate investors. In contrast to traditional care properties in Germany, which are often restricted by government regulations, the senior living market in the USA operates on a purely market-based basis and offers greater flexibility and growth potential. These facilities often resemble high-class residential concepts with additional services that promote the well-being and quality of life of older people.
In view of the demographic development - the so-called “silver tsunami” - and the currently moderate prices due to rising cap rates, there are favorable entry conditions. The market is robust and has structural undercapacity, which could lead to lower vacancy rates and rising rents in view of the limited new construction.
Overall, the senior living market in the USA offers an excellent opportunity for portfolio diversification and long-term investments. Particularly in times of economic uncertainty and rising interest rates, investments in this market could be a valuable asset for investors with an appetite for investment and yield. Read the whole article.
Creating space for a new life: rethinking senior living
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Demographic change: The ageing population, particularly the baby boomer generation, is leading to a sharp increase in demand for age-appropriate housing. The population over 80 is expected to grow exponentially worldwide in the coming years.
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Recession resistance: Senior living has proven to be relatively crisis-proof, as the need for care and assisted living is independent of economic cycles. Demand for these services remains stable due to the health and needs of the elderly population.
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Demand exceeds supply: Construction activity in this sector often lags behind demand due to challenges with financing and construction costs. This leads to stable or rising occupancy rates and creates opportunities for rent increases and capital growth for investors.
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Diversification of risk: Senior living offers investors an opportunity to diversify their real estate portfolio. The asset class can have a more stable and often less cyclical income profile than other real estate sectors such as offices or retail.
The Senior Living
U.S. Senior Living - A Hotel? A Multifamily?
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Opportunity to belong to a Community of peers and live a full life throughout their retirement years.
