Investing in Senior Care Real Estate - First in a Series
October 1, 2009

By Jon Meier, Director of Advisory Services
jon@seniorcarerealty.com

One of the more enduring statistics that will come out of the Great Recession is how almost every asset class has seen a severe deterioration in value over the last two years. Senior care real estate has seen a downturn as well, although less severe than other asset classes. Is the worst over? Are the opportunities worth the risks? When will the good times return?

In this series, we will examine different aspects of investing in senior housing. Benefits of senior housing investments, the associated risks, a comparison of senior housing with other real estate classes, and the effects Alzheimer's and other memory impairment disorders will have on the assisted living industry are just some of the topics that we will explore. We already know that the senior housing industry is at the forefront of a tremendous amount of interest and investment:
  • The US Census Bureau estimates that by 2030 the population of those 65+ will double. The Bureau reports that the senior population will account for about 20 percent of the US population by 2030, up from less than 13 percent today.
  • The Alzheimer's Association forecasts that by 2030 close to 8 million people, 65+ will be affected by the disease, a 50 percent increase from those that currently suffer from the disease.
  • The senior care market is driven by the surging senior population and is not directly tied to external factors such as economic growth, unemployment or energy costs. For these reasons, adding senior housing assets to an investment portfolio could increase diversification and lower overall market risk.
  • Capitalization rates have been rising in the senior care industry providing excellent entry opportunities for investment and purchase of properties.
Senior Care Realty provides a variety of services to our clients and we can answer your questions about the senior care industry. Visit our web site or give us a call to learn more about investing in senior care real estate.

For more information, contact us at (608) 837-2649 or visit www.seniorcarerealty.com.