The Opportunity
The Opportunity in Senior Housing
Senior housing represents one of the most compelling real estate investment opportunities of the next two decades. As demographic forces, healthcare trends, and market inefficiencies converge, savvy investors are recognizing the unique blend of resilience, income, and impact offered by this asset class.
đź“Š Demand Drivers & Demographics
- By 2030, all Baby Boomers will be age 65+, adding over 10,000 Americans per day to the 65+ cohort (U.S. Census Bureau).
- Over 70% of people aged 65+ will require some form of long-term care (ACL.gov).
- The 85+ population will triple by 2040, increasing demand for assisted living and memory care.
- Families are turning to care communities due to rising complexity of aging-in-place needs.
đź’° Attractive Risk-Adjusted Returns
Senior housing has historically delivered consistent, above-average returns:
- IRRs between 12–18% for stabilized assets (NIC MAP Vision).
- Cap rates 100–200 bps above multifamily (CBRE Research).
- Low correlation to stocks and other asset classes (NAREIT).
🛡️ Downside Protection & Recession Resilience
- Senior housing fared better than hospitality and office during COVID-19 (NBER).
- “Needs-based” care drives occupancy stability, even in downturns.
- Zoning/licensing barriers prevent oversupply in most markets.
- Acquisition prices often below replacement cost, mitigating downside risk.
🌍 Social Impact & ESG Alignment
Senior housing offers investors a path to values-aligned, impact-focused returns:
- Supports dignified aging and wellness for vulnerable populations.
- Drives jobs in caregiving, clinical care, and community services.
- Ideal for ESG-conscious RIAs, family offices, and HNW investors.