[SPEND NOW!] Big investment gap will thwart senior housing
Senior housing is on the cusp of a dramatic growth opportunity and a potential availability crisis, with a $275 billion investment gap between projected supply and demand that will position stakeholders well if they can act to meet the growing demand, according to the latest National Investment Center for Seniors Housing & Care (NIC) MapVision report.
The report reveals the contributing factors to this investment gap, and data from NIC MAP Vision could help investors understand the opportunities and risks ahead in senior housing.
Among the findings:
- The 80+ population is expected to expand significantly over the next 25 years, leading to an unprecedented growth supercycle.
- Demand is robust, as shown by high absorption and occupancy rates in the second quarter of 2021.
- Nevertheless, senior housing construction starts have fallen to below all-time lows, last seen following 2008.
- At the current pace of development, NIC expects a potential $275B investment gap by 2040 and a $725B investment gap by 2050.
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