One thing was clear at the National Investment Center for Senior Housing (NIC) fall conference that was held recently in Chicago. The interest in senior housing continues to grow. With more than 3,300 attendees at NIC, it was a whirlwind of activity meeting with developers, operators, equity providers and lenders, all who are optimistic about the future for new development in senior housing.
There seems to be no limit to the private equity that is available to experienced developers who along with their operating partners have a solid track record. Private equity funds that target the senior housing sector raised more money in 2018 than at any time before, with more than $15 Billion raised. This is up from the previous record of $10.8 Billion raised in 2015.
This high level of interest in senior housing can be supported by the fact that the number of Americans age 65 and above is projected to grow from 52 million in 2018 to 78 million by 2035. Studies also indicate that with lower marriage rates and fewer children, the need for private senior housing solutions will grow at a faster rate than in the past.
There is much focus on what the future senior housing solutions will look like. The next generation of seniors will likely demand something different than what we think of today as senior housing. There are a lot of developers who are currently pursuing Independent Living projects, Age Restricted Apartment projects as well as a major focus on solutions to provide senior housing options to the middle market population. NIC is projecting that 54% of future “middle market” seniors will not have the means to meet the estimated $60,000 annual cost of living in senior housing as we know it today.
For more than forty years, The Douglas Company has been working with developers and architects to find senior housing solutions that work in the marketplace. Today is no different; we are heavily engaged in new and innovative designs and construction methods to help clients find success in the senior housing market. We believe it is a Bright Future for Senior Housing and we are excited to be a part of it.
Bob Ritter
Director of Business Development
The Douglas Company
