Should You Invest in Senior Living?

With an aging population that will continue to look for affordable, senior cohousing living environments, investing in senior housing is becoming a more popular and profitable option for investors and developers. Senior cohousing addresses demand for those seniors who do not require the extra care an assisted living facility provides, yet no longer desire to live by themselves.

Independent living options are cost-prohibitive for many seniors who are on fixed incomes. Cohousing situations offer seniors the chance to save money on living costs and get the support and engagement from a social environment.  As the first wave of baby boomers move into their 60s, cohousing developments are expected to continue to grow and make a senior housing investment a wise long-term financial decision.

Investing in Senior Housing on Ground Floor of Cohousing Boom

As the demand for affordable housing increases for seniors, consider an investment in cohousing opportunities as they continue to become available. The Cohousing Association of the United States lists just 13 official senior cohousing communities, though that number is expected to skyrocket shortly, making investing in senior housing a rare ground floor opportunity.

It is a niche market that may scare off some investors who are unfamiliar with the potential senior cohousing has in the near and long-term future. As the longevity of seniors increases, and they are expected to live longer, the growth of these innovative living complexes will continue to grow in the senior housing real estate sector. With Americans more focused on healthy living than ever before, investing in senior cohousing will continue to be a growing senior housing investment that will guarantee continued growth and profits in the future.

Understanding the Risks of Senior Housing Investment in Senior Cohousing

Any real estate investment comes with some risks, and senior housing investment is no exception. Management concerns for senior cohousing communities are unique from other rental properties. Residents may be grappling with the decision of whether they need more comprehensive care that an assisted living community can provide. These are tough choices individuals and families must make, and factor those investing in senior housing must consider.

Communal living among the senior population can bring about privacy issues that result in resident conflicts. When investing in senior housing, it is important to hire a professional, respected property management company with extensive experience in senior communal living.

The good news is that investing in senior housing facilities that feature senior cohousing options offer a stable rental income with a lower turnover rate as seniors prefer the independence of a cohousing situation rather than a more restrictive assisted living environment. Rents can be increased with the addition of amenities to draw higher-end residents. The cost of common cooking areas and recreation centers, on-site dry cleaning or housekeeping services, workspaces, and fitness centers can be built into the rental prices.

However, turnover is inevitable, and a senior housing investment in senior cohousing will need patients and a long-term approach. Residents will eventually become ill and unable to care for themselves, forcing a move into an assisted living or skilled nursing facility. Despite the fact the population is living longer and in better health, the mortality rate of tenants is understandably higher than renting to younger demographics.

Log Onto MyEListing for Senior Cohousing Investment Opportunities

If you are in the market for an innovative investment opportunity, log onto MyEListing, the free online resource to find or post a senior housing investment or any other commercial real estate property.

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