In the coming decade, North America's aging population is set to transform the senior housing landscape – and not without significant growing pains. With projections showing that the number of Americans over 80 will surge by 50% within the next 10 years, and in the next 5, 25% of all Canadians will be seniors, the demand for quality senior living is skyrocketing. Yet the current supply of beds is inadequate.
Industry leaders are sounding the alarm. Harrison Street Global CIO Mike Gordon noted that, as a result of these demographic shifts, there will be a need to deliver more than 42,000 new senior housing units annually to meet demand. “The sector has hit a 14-year low in supply, with construction starts plummeting to record lows,” said Gordon.
Senior housing has proven to be a resilient asset class – even recording positive rent growth during economic downturns – however the surge in demand threatens to overwhelm existing facilities. Developers, investors, and policymakers must act now to drive new construction, modernize existing facilities, and adopt innovative care models that can scale with demand.
Ultimately, addressing this supply-demand gap is both a financial imperative and a moral one. Strategic investments in senior living not only promise robust, sustainable returns but also ensure that seniors receive the high-quality, supportive environments they deserve.
Comments