As in the stock market, successful real estate investors know the importance of being up to date on the trends in their sectors. Because real estate is cyclical and can also be volatile, it’s crucial that you know what new trends are coming into a market that is constantly undergoing change. Today, adults who are entering their “golden years” are trying to figure out where they want to live as they age. While Baby Boomers want to remain independent for as long as possible, they may not want the responsibility of having to maintain their spacious, multi-bedroom, two story homes that they raised their children in. This has created an investment opportunity among real estate investors.
What is it?
Senior cohousing has been a growing trend within the United States since 2000. While it originated in Europe in the 1970’s, today there are several senior cohousing communities in America with many more being constructed. At the root of senior cohousing is the idea of bringing together those with similar values to live in a cooperative community where they can maintain their independence without having to deal with all the responsibilities of home ownership.
Why is it right for you?
As an investor, you have to continue looking for ways to get in on new trends early on in their existence. With a relatively low number of senior cohousing communities currently in existence, this market hasn’t become saturated yet. The fact that there are several more in the works suggests the market is clearly growing but isn’t yet crowded. Studies indicate that seniors are looking to downsize their current homes but don’t necessarily want to live in “retirement communities.” That means that this investment opportunity has plenty of potential and room for long-term growth.
How do I invest?
The answer to this question depends on how quickly you’d like to get a return on your investment. If you’re not worried about getting an immediate return, you may want to partner with a developer to identify a market where a senior cohousing structure could be profitable. You could then work together to locate, plan, and build the whole thing from the ground up. If you’d like to get a quicker return on investment, albeit a potentially smaller one, you may be able to buy into a senior cohousing community that is already being built or is even already occupied but looking for additional funding.