This fall we made our first investment in Assisted Living with a 125-bed property in Wisconsin. Our focus has primarily been on single family and multi-family properties the last few years both locally and in other markets around the country. We have also invested in a fund of funds with multiple asset classes (self-storage, mobile home parks, multifamily).
Baby Boomers represent over 21% of the population in the U.S. and they are getting to the age where they need care. According to research from the National Investment Center for Seniors Housing & Care (NIC), the U.S. will need almost 775,000 new units by 2030 and 986,000 by 2040. Someone turning 65 today has a 7-in-10 chance of needing some type of senior care as they age, according to the Administration for Community Living and Administration on Aging. The problem is, there aren’t enough facilities to cover the demand. Check out this graph to see the projected growth of this population:
Just for context, “Assisted living communities are a popular choice for older adults who wish to live independently but need some help with activities of daily living (ADLs), such as bathing, eating, dressing or moving from a bed to a chair. These residences vary significantly in size, accommodations, costs, amenities, care and services…Costs of assisted living are typically based on monthly rent plus additional fees for varying levels of care, although some assisted living communities include care costs in an all-inclusive monthly rate.” Forbes.com
