Go long in senior housing: NIC MAP Vision data reveals a $275 billion investment shortage in senior housing developments across the country by 2030
2024年6月27日 - 1:35AM
ビジネスワイヤ(英語)
Senior housing development pace needs to triple
to meet the needs of growing 80+ population
The sirens are sounding: We currently don’t have enough senior
housing to meet the demands of older populations. As the number of
people aged 80 and older continues to grow rapidly, we will not
have enough senior housing to meet this demand in the next five
years. This is according to detailed projections from NIC MAP
Vision, the senior housing industry’s leading provider of senior
housing data and analytics. NIC MAP Vision’s report – Senior
Housing Outlook - highlights a critical shortage of senior housing
developments amidst rapidly growing demand, emphasizing the need
for immediate action and the ripe opportunity for investors.
Senior Housing: A $275 billion opportunity
Senior housing is poised to be one of the most profitable real
estate asset classes. According to NIC MAP Vision data, the current
senior housing development pace indicates a 550,000-unit shortfall
by 2030, which represents a $275 billion investment shortage. This
is prime to be filled with new investments in senior housing
inventory to meet the needs of the aging population.
"There’s a significant generational opportunity for investors in
senior housing development and acquisition. As the demand for
senior housing grows, investing in this sector will result in
substantial returns and long-term growth,” said Arick Morton, NIC
MAP Vision Chief Executive Officer.
Booming Senior Population: Time to Go Long in Senior
Housing
Emerging from the pandemic, labor crisis, and capital markets
freeze due to high interest rates, the senior housing market is
ripe for investment. The number of people aged 80 and older is
projected to grow rapidly over the next 25 years, with historic
absorption growth already up 40 percent year over year. Absorption
is outpacing supply growth, indicating a significant unmet demand.
Despite this, the current investment trend is insufficient to meet
the growing need, presenting an immediate opportunity to go long in
senior housing.
"The senior housing industry has battled through a trifecta of
crises. As we move past the challenges of the pandemic, labor
shortages, and high-interest rates affecting capital markets, the
senior housing market presents a prime investment opportunity,”
said Morton. “We see the longer view. The demand is high and the
current supply insufficient, making it an ideal time for investment
in this sector."
Critical Shortage of Senior Housing Developments: Need to
Triple Development Pace
The report underscores the urgent need for a historic increase
in new senior housing units to keep pace with the growing demand.
New senior housing starts have plummeted to just 0.2 percent of the
existing inventory, the lowest level in recent history. To meet the
projected needs over the next six years, development must
accelerate to more than 3.5 times the current pace. With only
26,000 units being developed annually compared to the highest rate
of 56,000 units in the 21st century, the industry is on track to
fall 50 percent short of the required inventory by 2025.
Alarmingly, only 25 percent of the necessary units have been
developed to date.
“We are critically behind in taking care of our aging
population,” said Morton. “We’re already seeing the early stages of
this incredible demand growth that will continue non-stop for the
next 25 years and beyond. We simply don’t have enough senior
housing inventory in the pipeline, so we must act now to develop
senior housing to help meet this demand.”
For more information, visit NIC MAP Vision.
About NIC MAP Vision
NIC MAP Vision maximizes access, choice, and quality in senior
housing by providing data, analytics, and services to industry
stakeholders and partners. We are the only intelligence provider
exclusively dedicated to senior housing. As the industry’s gold
standard for market analytics data, we are trusted by the largest
government agencies, 18 of the 20 largest senior housing operators,
and most of the largest investors and owners. Every day, thousands
of industry professionals use our data platform and proprietary
tools to make smarter decisions about where to grow, how to grow,
and how to bring a strategy to life. For more information, visit
https://www.nicmapvision.com/
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version on businesswire.com: https://www.businesswire.com/news/home/20240626227634/en/
Mary Prevost, Prevost Partners 612.202.3047,
mary@prevostpartners.com