Are senior housing, assisted living properties, and senior care businesses a great investment in 2024?


  • In 2024, there are an estimated 30 million Americans over the age of 75 and 9 million over 83, a common move-in age of a resident to seniors housing.
  • It’s not until the end of this upcoming decade in 2029 that the oldest baby boomer will have turned 83—effectively opening the proverbial floodgates for seniors housing investments.
  • 2 million Americans will live in senior care communities by 2030, doubling from 2016.
  • By 2050, it is estimated that over a fifth of the population in the United States will be 65 years or older, compared to only 15.6 percent today.

SENIOR HOUSING IS OUR BUSINESS

HavenCo Capital provides a skilled analysis of potential senior housing for investors. Using investment analysis technology, coupled with market expertise and investment experience, we help investors assess the viability of an investment as well as evaluate value-add opportunities to enhance returns. This successful combination gives us and our clients a strategic edge.


For the senior care investor the senior housing market benefits from a massive demographic groundswell. Despite the overwhelming growth in the senior population, new supply growth has remained well below the highs of 2006 and early 2008, while stabilized occupancy has continued to increase.

As such, we believe that the acquisition, renovation, and development of Senior Housing and assisted living facilities comprise one of the very best risk-adjusted opportunities in both commercial real estate and general domestic investment. That said, it is not an easy space for passive investment. While the coming years will see many new entrants into space, senior housing is unique compared to more conventional forms of real estate by being far more operationally complex and demanding from a regulatory purview. In sum, despite the favorable population momentum that underpins the senior living sector, the successful execution of the strategy requires an experienced and dedicated investment team.

SENIOR HOUSING IS A RECESSION RESILIENT ASSET CLASS

A major benefit for investors in the senior housing space is the resiliency of this sector of the commercial market. A key component of the senior housing market’s success is its lack of reliance on an economic or real estate environment. Senior housing has been the number one performing commercial real estate sector for the last ten years. This includes the period encompassing the 2007 capital market collapse, in which returns among other commercial sectors fell as much as 20%.

SENIORS HOUSING AS AN INVESTMENT

Over the last five years, annual investment volume in specialty properties has accounted for 12% of all CRE investments, representing about $59 billion in annual transactions.

These are the eight main specialty investment sectors, listed by market share of all alternative investments and the annual average investment volume from 2014 to mid-year 2019:

  • Seniors housing and care – 31.3% share of all alternative investments / $17.2B annual average transaction volume
  • Medical office – 22.1% / $12.2B
  • Student housing – 13.3% / $7.3B
  • Life sciences – 11.8% / $6.5B
  • Self-storage – 9.0% / $5.0B
  • Manufactured housing communities – 6.3% / $3.5B
  • 55+/Active adult communities – 3.2% / $1.7B
  • Data centers – 3.1% / $1.7B

Senior Housing Capitalization Rates 2024


Be sure to check out our Senior Housing Investors Podcast. Listened to by thousands across the world.

When you need assistance, please fill in this form and within 24 hours a representative will be in touch with you. Your information is held in strict confidence and is never sold to a third party. We look forward to serving you.

Scroll to Top