Did you know that the average age for a retiree to transition into a senior living community is 84?
While the total U.S. population is only projected to grow 5% by 2032, Americans aged 80-84 are anticipated to increase a staggering 57% within the same timeframe.
Challenges such as increased construction costs, labor pressures, licensing hurdles, and tension within the capital markets have strained the incoming supply of new senior housing construction for years. As a result, units under construction for the senior housing industry have experienced a negative trend year-over-year since 2019.
The National Investment Center for Senior Housing recently estimated 200,000 new senior housing units will need to be constructed by 2025 to meet current demand. This is a figure that will not be met at the current pace of new supply, as evidenced by the following table:
Gap in Supply
Since 2018, senior housing assisted living units under construction have decreased 40%, and independent living units under construction have dropped 20%. This has created a large gap between available and needed senior housing units, which is projected to grow larger each year until supply strengthens.
Large Funding Requirements
800,000+ new senior housing units are projected to be required by 2030, requiring an industry-wide investment of $400 billion. However, only 40% of that investment need is currently on-pace to be fulfilled. Looking outward, roughly $1 Trillion in investment has been projected to be required to maintain our current industry penetration rates through 2050.
The Feeling
Not only is an investment with Senior Living Fund attractive financially, it allows investors to align their investments with their personal values. Our investors benefit from knowing there capital is being used for good, in senior communities across the U.S. Our range of investment offerings provide our growing portfolio of health-centric investment communities with the tools they need to help our aging population lead their lives to the fullest extent.
Below are some photos of the individuals we have been able to impact: