There are two dynamics meetings in senior housing, according to a recent report from Walker & Dunlop. One is the growth of the market. The other is that in multiple ways the industry still lags where it was before the pandemic.
The rapid growth of the aging population isn't exactly a surprise. NIC MAP Vision, a company that provides geospatial and market selection analytics for the senior housing and the care sector, said the current senior housing development pace indicates a 550,000-unit shortfall by 2030, representing a $275 billion investment shortage.
Walker & Dunlop quoted some figures from Green Street indicating a base case of 3.10% annual growth in supply but 4.60% in demand. By 2050, the estimate is that 20% of the population will be at least 65 years old. In 2023, the 80-plus population grew 4.4%, the highest level in 52 years, Walker & Dunlop claim.
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