There are so many different market trends to take into consideration as a real estate agent as well as a buyer or seller, but one trend that may slip most people’s minds is the senior housing trend. The baby boomers are coming closer and closer to the retirement age, so let’s find out what that means!
The senior housing market was the only section of real estate that experienced positive growth during the recession. This is because the baby boomer’s demands are predicted to double by 2050! This age group is entering the time of their life when they need specialized hosing. Also, due in part to advanced medicine and living improvements, the baby boomers are expected to live an even longer lifespan! This is exactly what has been keeping the market increasing. There is a huge demand for assisted living and memory care, and this demand also increase the amount of nursing beds needed as well.
Finding the right lender and funding may be difficult for some as well. Well never fear, Fannie Mae is here! This lender provides options for senior properties, independent living, assisted living, Alzheimer’s disease or any combination of these. Just in 2015, Fannie Mae lent around $2.7 billion in financing!
Also, recently minimum wage has increased in California and New York, and this does pose a challenge for nursing homes. California has an assisted living medical care facility that has seen modest labor expenses. Because California is so densely populated, New York as well, these states can sustain the increase that will affect a minor portion of its labor pool.
Nursing homes are increasingly relying on the wireless networks in order to improve resident care. More and more healthcare providers are switching to electronic medical records. Despite this, the growing technological integration is not affecting the size and cost of development. By improving the facilities’ ability to monitor and track a resident’s health, and respond to emergencies, this won’t boost care costs. By having better technology, there can be more success for senior living developers in the real estate market.