"With an aging population, senior housing has a clear long run structural demand driver pointing to further growth in the sector. Our analysis shows rent prospects appear strong on the back of undersupply and solid wage growth," Pattison wrote. "That makes senior housing a compelling option for investors looking to break away from traditional property investment."
The 65-plus population is on track to grow 30% over the next 16 years, encompassing 80 million Americans by 2040, according to estimates from the US Census Bureau.
Demand for senior housing is expected to surge 50% by 2040, Capital Economics estimated. The firm expects the sector to offer investors average yearly returns of 13% over the next four years.
The research firm pointed to the so-called 'silver tsunami,' the moniker that's been given to describe the imminent surge of Americans over the age of 65 entering prime retirement age. It says this will drive strong demand for senior housing facilities, including assisted living, independent living, skilled nursing, and memory care.
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