Fountain of youth: Multigenerational living could rejuvenate the senior housing sector
Baby boomers are entering the age of retirement, causing demand for the senior housing market to spike. And with the sector at its highest peak in the past 20 years, senior housing is experiencing some growing pains.
Between 5 percent and 8 percent of people born between 1946 and 1964 — roughly 6 million — are in line to transition to senior apartments over the next two decades, according to a 2019 Senior Housing Survey by JLL.
There are currently 23,500 professionally managed senior housing and nursing care communities in the United States, according to CBRE. But there has been a slow down in development nationally.
The slowdown allows supply and demand to catch up due to the over development of projects, reported Marcus & Millichap in its first-half 2019 National Seniors Housing Research Report. The independent living segment of senior housing alone shot up by 8,400 units in 2018, down from the 12,100 units built the year before. Right now, developers