Real Estate investment harbors a myriad of benefits. These incentives include but are not limited to tax-free cash flow, tax write-offs against income, as well as rental/lease agreements. Yet, there is a growing Real Estate opportunity available to the motivated and savvy investor that few have maximized at this point in time. Perhaps the most tempting opportunity yet to be cultivated is that of Senior Healthcare Real Estate.
The rate at which American Seniors are retiring is truly staggering. As recently as 2010, only 13% of Americans were 65 years of age or older. By 2030, the percentage of Americans 65 or older will climb to 18% due to the emergence of Baby Boomers into the age of retirement [1]. Such a vast increase of Americans entering retirement only creates a greater demand for Senior Retirement Facilities.
However, this is only half of the incentive behind such a development. Along with the growth of Americans over 65 years of age, is a growth in the age of an average nursing home. Today the mean age of an American nursing home is approximately 40 years [2].
When these two dynamics are married, the need that is left unaddressed is the growing market for newer and better facilities/communities tailored to emerging retirees. Boomers will have an entirely different preference regarding their retirement situation than what is currently provided to recipients of Senior Care.
Demand for such a new culture prompts a variety of future enterprises, and will certainly spur job creation. In several instances, over 300 construction jobs are created for every one nursing home built from the ground up. As well, over 100 permanent jobs will arise in the fields of management and care within the new facility.
Real Estate investors will be wise to note the presence of both strong demand and underwhelming product. Together this is the recipe for robust economic impact, and it makes for a smart play for Real Estate investors compelled to find strong dividend growth and dividend yield.
Investors can find a variety of senior housing real estate offerings across different categories on the CrowdStreet commercial real estate investing platform.
