{"id":6893,"date":"2025-10-12T21:26:29","date_gmt":"2025-10-13T01:26:29","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6893"},"modified":"2025-10-12T21:26:33","modified_gmt":"2025-10-13T01:26:33","slug":"the-senior-living-market-cant-keep-up-with-demand-a-deed-may-be-the-best-senior-living-plan","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/the-senior-living-market-cant-keep-up-with-demand-a-deed-may-be-the-best-senior-living-plan\/","title":{"rendered":"\u201cThe Senior Living Market Can\u2019t Keep Up With Demand\u201d: A Deed May Be the Best Senior Living Plan"},"content":{"rendered":"\n
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In a recent issue of the CNBC Property Play<\/em> newsletter, Diana Olick wrote that older adult living is \u201con the edge of a boom \u2014 a baby boom, to be exact.\u201d<\/p>\n\n\n\n

Between today and 2030, more than 4 million baby boomers will reach the age of 80. Can active adult and assisted living properties climb aboard the longevity economy<\/a> and accommodate the forthcoming senior population?<\/p>\n\n\n\n

The answer appears to be no. Not by any stretch of the imagination.<\/p>\n\n\n\n\n\n\n\n

The Numbers Don\u2019t Lie.<\/h2>\n\n\n\n

About 4,000 new senior living units will open for business in 2025 and 2026 combined. That\u2019s not going to cut it.<\/p>\n\n\n\n

CNBC cites figures from the National Investment Center for Seniors Housing and Care. What do the numbers show? The senior living sector needs to prepare to receive 100,000 people looking for living spaces each year through 2040.<\/p>\n\n\n\n

CNBC spoke with a senior living CEO who has compared the industry\u2019s preparations to putting a balloon on the end of a fire hose. The CEO said developers aren\u2019t providing what\u2019s needed because they\u2019re balking at the interest rates involved with financing new development.<\/p>\n\n\n\n

Companies That Bought Up Properties Are Ready to Profit.<\/h2>\n\n\n\n

Harrison Street is a large investment management firm that deals with \u201calternative real estate\u201d such as independent living, assisted living, and memory care homes. The firm offers an investment opportunity called the U.S. Core Senior Housing strategy.<\/p>\n\n\n\n

In this investment sector, supply is severely limited; demand is growing reliably. Leadership now anticipates the most promising time, financially, in the company\u2019s history.<\/p>\n\n\n\n

A CEO of a senior-focused real estate investment trust that owns 850 senior sites \u2014 and counting \u2013 told CNBC the investment opportunity is unprecedented, with growth expected to run at 28% over the next five years. The company\u2019s huge collection of properties means it can outperform firms that are just now trying to develop sites.<\/p>\n\n\n\n

Meanwhile, how are seniors expected to pay? Monthly rents at many senior properties run into the five figures. (The cost typically includes rides to shopping or medical centers, meals, electricity, special activities, and everyday assistance to the degree residents need it.)<\/p>\n\n\n\n

Older adults sell their homes for cash to reserve senior living space. Many older adults have seen their home values rise to very high levels, and senior living companies are benefiting from baby boomers\u2019 collective home equity.<\/p>\n\n\n\n

Opting to Age in Place? Plan Ahead.<\/h2>\n\n\n\n

Most people aged 50 to 80 hope to age in place \u2014 that is, at home. And it looks like many more of us will need to do so. But this is not just a matter of staying put. It takes preparation.<\/p>\n\n\n\n

Those hoping to live at home as long as possible must plan for the basics:<\/p>\n\n\n\n