While many things are hard to predict in the business world, demographic trends are as close to a sure bet as one will ever find.
Take the aging U.S. population. Based on the age distribution of people alive today, demographers from both government and business predict with near certainty that the U.S. population will shift ever older in the coming decades. Already, the U.S. is home to more than 50 million people 65 and older, with nearly 37 million more baby boomers projected to turn 65 over the next decade, according to SeniorCare.com. For a dramatic visualization of the aging trend, see this animated chart in the Los Angeles Times.
Over the long-term, an aging population means the demand for senior housing will grow. But, just as the stock market has ups and downs within its overall upward growth, year-by-year the senior housing market will experience bumps on its growth trend. This has been the case in 2017, where Forbes reports a boom in new senior housing supply outpaced demand in the first quarter and that “the second quarter didn’t fare much better.” Even so, the near certainty of the long-term aging trend is attracting investors in senior living. The real estate experts at JLL forecast that demand for senior housing will double between 2017 and 2035.
As a key market for modular construction, SurePods will continue to watch the senior living sector closely, and provide updates on what we learn.
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Reach out to the SurePods experts to find out more about our experience in the senior living market. Ask about the Fairhaven project! Contact Us