Arizona’s expanding senior population continues to drive strong opportunities for a senior housing investment in Arizona. The state’s combination of favorable demographics, quality healthcare infrastructure, and appealing climate has attracted both developers and investors.
New projects and financial models are emerging to meet the housing and care needs of older adults while creating long-term investment potential.
Demographic Trends Fueling Demand
Arizona’s senior population continues to expand. By 2030, those aged 65 and older are projected to make up nearly 20% of the state’s residents, according to projections from the Arizona Office of Economic Opportunity.
The 85+ population is expected to increase by more than 50% between 2025 and 2035, as outlined by research from Arizona State University’s W. P. Carey School of Business.
This growth creates a demand for a number of senior living options, including independent living, assisted living, and memory care facilities. Communities that bring healthcare access, social engagement, and convenience are particularly in demand. These trends highlight the long-term stability and appeal of senior housing as an asset class.
Investors increasingly recognize that demographic shifts in Arizona are a driving factor behind the potential growth of a senior living investment, signaling opportunities that extend beyond typical real estate considerations.
Emerging Investment Opportunities
Recent transactions in Arizona underscore the growing confidence in the senior housing sector. For example, JLL Capital Markets arranged a $96.5 million refinancing for a five-property, 971-unit senior housing portfolio in Phoenix, Mesa, Sedona, and Chandler, spanning independent living, assisted living, and memory care units.
IRA Capital acquired a Gilbert senior living community for $44 million, which demonstrates investor interest in both urban and suburban markets. These examples show how developers and investors are responding to the state’s expanding senior demographic and how investment offerings are structured to capture long-term potential.
Financial Structures and Considerations
Investors in Arizona’s senior housing market have several financial options. Fixed-rate ground leases, for example, offer long-term stability and predictable returns. The Acanthus Fund has secured 90-year ground leases on land developed for senior communities. This long-term structure helps strengthen investor confidence and project stability.
Other structures, such as tax-exempt and taxable bonds, enable the development of senior living communities with both private and public support. JLL and HJ Sims arranged nearly $240 million in bond financing for new senior living facilities, showing strong capital availability for these projects.
These financial strategies provide investors with structured ways to participate in a market that benefits from both senior housing investment benefits and demographic-driven demand.
Community Impact and Growth Potential
Senior housing development in Arizona does more than meet individual needs. It positively affects the surrounding communities. Redevelopments create employment opportunities, increase local property values, and encourage complementary services such as healthcare providers and retail establishments.
Arizona’s potential growth of senior living investment is supported by several things:
- Favorable tax policies, including no Social Security tax on state income.
- A strong healthcare system with institutions like Banner Health and the Mayo Clinic.
- A cost of living that attracts retirees from higher-cost states.
Strategic Outlook for Investors
Investors exploring senior housing investment in Arizona should consider both demographic trends and market dynamics. Well-located communities, in line with healthcare access and amenities, deliver long-term stability.
Long-term leases and consistent demand from seniors seeking quality housing can support stable, predictable returns. Well-structured investment offerings let investors join projects that combine strong operational management with genuine community impact.
Arizona’s senior housing market is driven by more than expansion; it thrives on strategic and well-informed participation. Successful developments balance thoughtful design, accessibility, and skilled operations to sustain occupancy and resident satisfaction.
Investors gain the most when partnering with seasoned operators who understand senior living operations, uphold care standards, and deliver solid financial performance.
Senior Living Fund, LLC’s Approach to Senior Housing Investment in Arizona
Senior Living Fund, LLC actively seeks opportunities for senior housing investment in Arizona, with a focus on projects that create meaningful community impact and align with investor goals. Our team brings decades of experience across planning, construction, leasing, operations, and management of senior living communities.
We assess each project not only for its financial potential but also for the quality of life it provides residents. This makes sure that every development achieves strong operational performance and thoughtful design.
Senior Living Fund, LLC knows Arizona’s distinct market conditions, including its growing senior population, advanced healthcare network, and evolving local regulations. Through our expertise and strategic approach, we build vibrant, accessible senior living communities that reflect our commitment to both resident well-being and sound investor participation.
If you have questions about Senior Living Fund, LLC, or want to learn more about our projects in Arizona, please reach out to us via phone, email, or our online contact form.
We are happy to provide guidance and discuss investment opportunities that are in keeping with our mission to deliver positive impact and superior projected returns.