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5 Hottest Markets

For Senior Housing

By on May 10, 2018 in News

In many cities, senior housing growth has plateaued. Over saturated markets have led to stagnant occupancy rates. According to the National Investment Center for Seniors Housing and Care, 2017 ended with the national occupancy rate at 88.8 percent, down 70 basis points year-over-year. The greatest stagnation takes place in markets with low barriers to entry, such as Atlanta, Dallas and Denver, reports CBRE.

Yet there are markets that are still ripe for investment. They come with their own challenges but they stand a greater chance of success. Below are MoneyRate.com’s five best bets for senior housing investment.

 

  1. California San Diego and San Jose offer plenty of opportunities for construction and development—once you get past the high barriers to entry, like high land costs and low availability. It can take years for a project to break ground but once it does your class A property can thrive.

 

  1. Arizona This dry desert state has done a marvelous job of absorbing new supply. Occupancy rates remain high, leading analysts to believe that there is more room for growth.

 

  1. Florida The sunshine state remains popular with seniors. More seniors live in Florida than anywhere else in the United States. Their life expectancy is third-highest in the nation, meaning there are plenty of golden years in need of beautiful abodes.

 

  1. Maine The northern gem ranks among the top five states for retirement. It ranks just after Florida in terms of its senior population. The state offers low crime rates and relatively low to moderate land prices, which can help keep housing prices affordable for seniors.

  1. Washington Seattle is the wildcard of the list. National Real Estate Investor lists the city due to its increase in construction and the presence of major tech giants—assuming retirees want to stick around. The urban market offers respected public transit and easy access to amenities, which could lead to great opportunities for senior housing investors.