In the United States, the "Baby Boomer" generation, one of the largest and wealthiest age demographics, is measured as those people born between the years 1946 and 1964. That means that for the oldest "boomers" born in the post-war years, they are now reaching the age of 80, while those born in the early 60s are now approaching their retirement age.

Again, it bears serious consideration that this generation of Americans is one of the most significant economic and social demographics. Not only were they born at a time when big families were still the norm, and thus are far more numerous than other generations, but they also benefited from the financial advantages bestowed upon them by their parents of the "Greatest Generation," or sometimes the "Silent Generation," but the result is the same. They were fortunate enough to grow up in a time of great economic prosperity, and thus have built up significant financial resources that subsequent generations don't have.

All of this is significant because it means one thing in real estate terms: they are a financially significant demographic that is now aging into a state where they will have specific needs. And those needs can be handily met by anyone strategic enough to invest in senior housing.

Special Needs

Senior Housing, as the name suggests, provides specific considerations and benefits for elderly residents, who may not be as self-sufficient or independent as younger residents. Aging introduces a range of different conditions for the elderly to contend with, from medical conditions that affect mobility to cognitive decline, which means periodic assistance or check-ins are required.

These are specialized features or services that aren't typically built into generic residential dwellings. For example, a step-in shower may be essential for a senior with mobility issues who can no longer step over a bathtub to take a shower, or in some cases, even the lip of a shower stall, due to wheelchair usage. This requires specialized construction, but as a result, Senior Housing with this feature can be in high demand for certain segments of the market.

Low Supply

Ironically, as the market for senior housing grows, the actual inventory of available residences remains surprisingly low. Few new senior housing projects have been built in recent years, resulting in extremely high occupancy rates in this demographic, a market trend that is set to only grow as more and more of the baby boomer generation experience the challenges of aging and find that they have more specific, demanding residential needs that their current homes can't provide.

Because this is a demographic with a substantial amount of financial solvency, it would be wise for long-term, strategic investors in real estate to look at senior housing and consider whether they want to service this market. The baby boomer generation will be directing its considerable wealth toward making its twilight years more comfortable, and the people with the foresight to provide the supply to meet this demand will enjoy healthy revenue and high, stable occupancy.

If you want to ensure your residential property investment venture is successful, contact Occupancy Solutions and let us help.