All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
BlogArrowReal Estate Deal Analysis & AdviceArrowHere’s Why You Should Consider Investing in Senior Living
Real Estate Deal Analysis & Advice

Here’s Why You Should Consider Investing in Senior Living

Anum Yoon
Expertise: Landlording & Rental Properties, Personal Finance, Real Estate News & Commentary
32 Articles Written

We all know how important having a retirement fund is, even if you’re decades away from reaching your golden years. One way to pad your retirement fund or make some money in the meantime might include investing in senior living. It’s not just paying for your own retirement — it’s investing in the kind of infrastructure you want to have access to when you retire.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Should You Consider Investing in Senior Living?

Let’s take a look.

Investment Risks

As with any investment, there is always some risk that needs to be considered. For 2018, the primary concerns for senior living investments include development and operating costs, construction activity, increasing interest rates, acquisition competition, economic changes, and regulation changes that could affect the market in the future.

While the market hasn’t changed recently for nearly half of the industry experts who were polled, many of them indicated it is taking longer for them to obtain a contract after an offer is made.

It is important to note that these polled experts work on all sorts of senior living investment projects, from retirement communities and assisted living facilities to independent living and memory care facilities.

Related: How to Make $20,000 Per Month By Investing in Assisted-Living Homes

Senior Living Communities

Retirement homes aren’t the only option for the aging members of our population anymore. Senior living communities, which allow senior citizens to live mostly independently with access to a variety of amenities, provide an alternative for individuals or couples who can no longer safely live on their own but don’t want to relegate themselves to assisted living facilities.

These communities provide everything from on-site health care services to meal plans to wellness programs and everything in between. From the outside, it might not look any different than any other small town you might pass on the highway — there are stores and businesses and parks. These communities are just designed to meet the needs of senior citizens.

Of course, to create these senior-friendly communities, investors are needed.

Should You Invest?

Why should you consider investing in senior living facilities if it will be years or decades before you can take advantage of them?

First, these are long-term investments. You don’t have to invest in a single project or a single facility. By investing in broad funds that focus on senior living in general, you can turn your investment into something long term that you can pay into throughout your life — and get returns from during your investment period.

If you are nearing your retirement age, you might consider investing in a housing development opportunity that you’ll be using sometime in the next decade. It is estimated that upward of six million people will need to utilize some form of senior housing in the next 20 years. With nearly 10,000 baby boomers turning 65 every single day, without people who are willing to invest in senior living, we could be facing a new kind of housing crisis.

Related: Senior Housing: A Better Option for Successful Wealth Succession?

By 2029, just 11 years from now, it is estimated that senior citizens will make up roughly 20 percent of the population. Investing now in senior living facilities in all their forms could turn into a very lucrative investment in the next decade. In fact, it already is — it stays steady as the economy shifts up and down, with a 13.6 percent return on investment in the previous seven years, and a 12.16 percent return within the past year.

The returns on this kind of investment are often higher than other kinds of real estate, and they stay steadier during economic up and downturns.

With more retirees choosing senior living communities over assisted living facilities or nursing homes, the need for this kind of investment will continue to grow over the next two decades. Investing in senior living isn’t just good for your wallet in the short term. It is a way to invest in the kind of infrastructure you’re going to need when you finally reach those golden years. If you have the funds to start investing, senior living is a great choice — it offers better returns in the short term and a more comfortable retirement in the long term.

Would you consider investing in senior living?

Why or why not? Share below!

By Anum Yoon
Anum Yoon is the founder and editor of the millennial money blog, Current on Currency.
Read more
6 Replies
    Will Snashall from Columbus, OH
    Replied over 2 years ago
    What is the simplest means of entry into Senior Living investing?
    Alex Annoual from Hollywood, Florida
    Replied about 2 years ago
    Getting a discounted property maybe? We have one with 66 bedrooms in PA
    Mohammed Lone from Orwigsburg, Pennsylvania
    Replied about 1 year ago
    Hi Alex, Is this property still available? If yes, please DM me the details. Thanks, Mohammed.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Christian Rivas Plata Investor from Windsor, CT
    Replied 10 months ago
    Hey Alex, How did you go about this? Are you self-managing? Or do you "rent" it out to an operator that's already in the business of running these kind of facilities? I think I may have found a very interesting opportunity but not sure where to start. Could we chat a bit about this? Thank you, Christian

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Marie Fries from Whitman, MA
    Replied over 2 years ago
    This just opened my eyes as a new avenue to investing. How do I get started? What type of research would I need to do? I live in Massachusetts and everything here is booming. Also, I am a newbie looking to start my Real Estate journey.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Gene Leon
    Replied over 2 years ago
    @Marie Fries We are looking to purchase an investment property in our home state of Massachusetts. The prices are very high including units that are trashed and Foreclosed.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
Rotate Log in or sign up to comment

Related Blog Posts

Real Estate Deal Analysis & Advice Jan 15, 2021

Meet the Investors: How I Earn $800/Mo on a Single Property (That I Don’t Even Own!) Featuring Julian Sage

By Alexander Felice

Meet real estate investor Julian Sage, whose short-term rental management business nets huge profits for both himself and his Airbnb-owning clients.

Read more →

Real Estate Deal Analysis & Advice Jan 14, 2021

Best Deal Ever: How a 150-Day-Old MLS Listing Paid Off Big Featuring Joe Lieber

By Ken Corsini

On this episode of the Best Deal Ever Show, real estate investor Joe Lieber shares the story of solving a seller’s problem and earning a high profit in return.

Read more →

Real Estate Deal Analysis & Advice Jan 10, 2021

Should You Buy Properties With Back Taxes or Liens?

By Engelo Rumora

Are properties that have back taxes or liens a good investment? They certainly can be if the numbers work. Here’s how to tell.

Read more →

Real Estate Deal Analysis & Advice Jan 09, 2021

Meet the Investors: I’ll Net $25K on One Deal (& I’m Just Getting Started) Featuring Elizabeth Leigh

By Alexander Felice

Learn about a real estate investor whose journey has taken her from construction management to wholesaling by honing her interpersonal skills.

Read more →
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.