The senior housing industry faces a perfect storm of challenges as demand surges amid a rapidly aging population. A crisis is looming in the sector, warns Steve Ervin, senior vice president at Berkadia, citing both government downsizing and demographic shifts as key factors.
The demand for senior housing continues to outpace supply due to shifting demographics. According to NIC Map data presented at the American Seniors Housing Association (ASHA) annual meeting, the sector's occupancy has improved for fourteen consecutive quarters, reaching 87.2%. This trend is expected to continue as favorable occupancy rates and NOI growth make senior housing an attractive investment.
Ervin emphasizes the urgency of the situation: "In the next 10 years, look at the population of the US," he tells GlobeSt.com. "People over 80 will increase by 50%. There are so many people who are going to need this care. There are not enough beds, period," even with current occupancy at 82% or 83%. "You add 50% and we don't have enough."
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