An old song: The senior housing sector is supposed to go boom! But stubborn baby boomers are not wild about being institutionalized
Given the economic stress felt throughout the U.S. economy during the past half-decade, it has been a comparatively smooth ride for owners and operators of senior housing facilities.
Rents, occupancies and operating incomes at senior housing communities have been on a steady upswing for three years. And despite some inevitable recession-related struggles, the senior housing space has suffered significantly less financial distress than other income-property categories, including the thriving market-rate apartment sector.
Mix in the dramatic demographic mega-wave ushering tens of millions of baby boomers into senior citizenship during the coming decades, and the outlook for “private-pay” (market-rate) independent living, assisted living and related communities seems downright rejuvenating.
The institutional investment community apparently concurs, having invested tens of billions of dollars th