When it comes to investing in real estate, there are plenty of options that can help investors turn a profit. One of the most profitable and long-term investments available is that of senior housing. Compared to other assets like multi-family and college housing, senior housing investment opportunities are especially strong and worthwhile for a number of reasons.

 

Steady Demand

As more individuals reach retirement age, namely from the “Baby Boomer” generation, the need for senior living options continues to grow. Rather than opting for a nursing home or other traditional senior living options, more and more seniors are instead choosing to live in senior communities, making this investment one that will continue to see an increase in prosperity over time.

 

Limited Risk

All investors know that each investment poses some risk. With senior housing, however, the risk is often lower than that of any other real estate investment. Senior housing tends to perform better during economic shifts, and it is overall a consistent, stable asset that results in steady returns.

 

Growth Potential

By the end of the decade, it’s projected that one-fifth of the population will be seniors, making senior housing an asset that is not only profitable in the present but will also be more profitable in the near future. Additionally, because the average life expectancy continues to increase thanks to modern medicine, seniors will typically spend more than 4 years in a given facility or community, making this investment more sustainable than other real estate properties like college housing, for example.

Beyond these areas of growth, senior housing investments also allow for expansion in a more physical sense. From growing a single community to investing in multiple locations, senior housing investments provide ample opportunities for innovation and growth.

 

Understated Asset

Despite the growing demand for senior housing options, the market is still relatively unpopulated. This means that there is plenty of room for investors of all experience levels to invest at low costs and with minimal risk. Some investors believe that the market could become oversaturated, but interest in senior housing investments remains far too low for that to be true.