Using Cost Segregation to Break into the Growing Senior Housing Market
According to the Wall Street Journal, the US octogenarian population is expected to increase by 4 million over the next 5 years. The oldest “boomers” are approaching 80, and advances in technology and medicine mean that enjoying life well into one’s 90s is increasingly possible. This growing population will need housing, and demand will soon exceed supply.
The senior housing market suffered a tremendous blow during the pandemic and many new construction projects were halted. As the senior population rebounds, a housing shortage looms. NIC MAP, a leading senior housing data service, has crunched the numbers. Their conclusion? “More than 560,000 new units are needed to meet all the demand by 2030, but only 191,000 will be added at current development rates.”
But many developers are hesitant to commit to new construction of senior facilities in these uncertain times.