Are Baby Boomers Flocking To Senior Facilities?

“New Senior Housing Raises Concerns Supply Will Outpace Demand From Baby Boomers.”

Sourced through from:

The baby boomers are beginning to increase the demand for healthcare-related products and services for a number of years now. The population of people over 65 years old will only grow as years go by and so will the need for senior housing. Therefore, healthcare REITs are set to grow in the long run.

Although 10,000 baby boomers turn 65 everyday, most will not move to senior facilities right away (if at all). Senior citizens are living longer and better, so a large number of new senior living establishments probably won’t be necessary any time soon. While keeping an eye on REITs, such as Sun Communities and Equity LifeStyle, retired people seem to be setting a new trend as many are moving to manufactured homes.

Builders may have already gotten a little overeager in constructing senior-based living facilities. The fear of a glut of such buildings is becoming a concern, especially in some areas. For example, the Wall Street Journal recently reported that Atlanta, Chicago, and Dallas might already be experiencing oversupply. For these three cities, new units represent more than 10 percent of the existing inventory. It’s probably a good idea to check the locations where the properties are before investing in a healthcare REIT.

Healthcare will always be needed, so this industry should still perform well during economic downturns over the long term. Some of the largest healthcare REITs have weathered the Great Recession quite well. They continued to distribute the same or even increased dividends during that time.

In conclusion, healthcare REITs are investments to hold for the long haul.

Disclaimer: This newsletter is not engaged in rendering tax, accounting, or other professional advice through this publication. No statement in this issue is to be construed as a recommendation to buy or sell any security or other investment. Please do your own due diligence before making any investment decision. Some information presented in this publication has been obtained from third-party sources considered to be reliable. Sources are not required to make representations as to the accuracy of the information, however, and consequently the publisher cannot guarantee accuracy.

Disclosure: The author has no positions in any shares mentioned, and no plans to initiate any positions within the next 72 hours.

One thought on “Are Baby Boomers Flocking To Senior Facilities?

  1. Jona March 24, 2016 / 10:16 pm

    Everyone loves what you guys are usually up too. This kind of clever work and exposure!
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    my personal blogroll.


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