Industry centered on senior care and housing is complex . This industry provides a broad array of services to seniors over the age of 75 , and can be divided into four care segments . These segments include Independent Living , Assisted Living , Memory Care , and Skilled Nursing Care . Historically , nursing care has been provided in a hospitallike setting ; however , a shift is underway to transition into a more homelike environment for nursing care . The remaining three care segments are traditionally delivered in a multifamily residential setting . These housing facilities , known as continuing care retirement facilities ( CRCCs ) generally provide all three remaining care segments : independent living , assisted living , and skilled nursing , in one community .
While the senior housing industry is complex and difficult to maneuver at times , there is a simple solution for investors who want a piece of the pie without the knowledge to be involved at the level of a general partner . Investors can become passive investors by buying shares in senior housing investments . Through passive investing , investors can take advantage of this exploding market without the headache of management and general partnership . We can help direct you to these highquality passive investing opportunities .
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Senior Housing Is a Recession Resistant Asset Class
A huge advantage senior housing investors have over traditional investors is the durability of the senior housing segment of the commercial market . Senior housing lacks dependence on economic and real estate climates , and this is a key component to the sector ’ s success . For the last ten years , senior housing has been the number one performing commercial real estate industry . This outperformance of other industries includes the era encompassing the 2007 stock market crash , in which returns dropped as much as 20 percent for other commercial sectors .
" Senior housing lacks dependence on economic and real estate climates , and this is a key component to the sector ’ s success . For the last ten years , senior housing has been the number one performing commercial real estate industry ."
Why Is Senior Housing Recession Resistant ?
Econ 101 : Supply and Demand
1 . Huge Demand : As discussed above , the growth of the senior communities in America is unbelievable . As our Baby Boomers age , the number of Americans 65 and older will grow from 47.8 million in 2015 to 79.2 million by 2035 . This huge rise continues to produce higher demand for senior housing facilities .
2 . Minimal Supply : While our elderly populations increase in size , you would imagine construction in senior housing would increase concurrently . Unfortunately , that has not been the case . Senior housing construction began a dramatic decline in 2008 that continued through to 2011 followed by only moderate growth through 2018 . From the years 2014 through 2019 , units constructed increased sharply ; however , in 2020 , occupancy rates are expected to continue rising while development slows once more .
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