Baby boomers will be key driver of future seniors housing development
Seniors Housing & Care Trends | Commentary by Elena Bakina, PhD, CCIM
Stability and strength of the Texas economy, population growth, median income and household values are driving a continuing interest in the seniors housing market.
Seniors housing inventory has increased as much as 20 percent since late 2014 in parts of Texas. Supply has outpaced demand in almost all major metros. However, developers and operators still find pockets of opportunities for new developments. New construction may have an adverse impact on the existing facilities, reducing their short-term occupancy rates and rent growth.
A recent survey by the Associated Press-NORC Center for Public Affairs Research revealed opportunities for improved cultural accommodation in long-term care. In some instances assisted living communities are perceived in a better light than nursing homes or home health care.
Developers in Texas’ major metros have begun to build seniors housing for various cultural communities to accommodate the multicultural population. Developers and investors continue to enter the market in anticipation of the upcoming Silver Tsunami of baby boomers that will be new additions to seniors housing.
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Click here for the Texas seniors housing team site.