senior citizens
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The global population of older adults is rapidly growing. By 2030 one in five US residents will be aged 65 and older. These trends signal more than a dramatic shift in demographics. They highlight promising financial opportunities for real estate investors to improve critical infrastructure and make a profit. Senior housing serves a vital purpose for this vulnerable population. However, there is a major lack of quality facilities for the increasing number of seniors. A boost in investment will address the rising need for better senior housing and improve the quality of care for millions of Americans.

Senior housing is a real estate niche poised to be a leading option for interested investors. By 2034, the population of American adults will outnumber children for the first time in the country's history. On a global scale, people are living longer and the need for assisted or independent living facilities has increased steadily. A 2023 study highlighted that 70% of adults aged 65 will require long-term care services. On average, they will need them for at least three years and some for more than five years.

Despite a surge in demand, senior housing has remained relatively unchanged. Some outdated facilities are still in operation, and others are being shut down. Some facilities lack the infrastructure to support the physical and emotional needs of seniors and other properties underperform due to bad management. Most Investors have not considered entry into this market due to the heavy focus on residential and commercial investment alternatives and the significant barriers to entry.

Dan Botwinik, the founder of real estate development company Cougar Capital Management, has been championing senior housing developments for years. Dan believes senior housing can be a responsible investment that provides both Investors and Communities with attractive benefits.

"In the last decade, the population of adults over 65 has surged," says Dan. "These trends present a major opportunity for investors to acquire underperforming assets or build newer properties that deliver on profit and purpose."

According to market outlooks, investors are exploring these alternative asset classes to rebound from financial losses. About 63% of participants said they are looking to increase exposure to the senior housing market. Assisted living is the most attractive investment opportunity, but independent living and active adult communities are also gaining traction. While values are rising, investors can acquire some senior housing properties at below-replacement cost. The sooner they purchase, the more they can capitalize on changing demographics and give back to aging populations.

The potential returns for senior housing are one of many motivators for increasing investor interest. The popularization of ESG and social responsibility initiatives has many individuals seeking impactful investment opportunities. Housing is a necessity for all people. Due to medical concerns and lifestyle changes, senior housing plays a unique role in the well-being of older adults. In addition to offering dedicated medical support, these facilities empower seniors to find community. By investing in, acquiring, or building senior housing, and through running it well, Investors can help this demographic can live their golden years comfortably. Employee satisfaction can also be elevated through investment and possible acquisition. After renovating underperforming senior housing properties, residents and employees may feel more satisfied and productive. Dan has witnessed these changes throughout a number of his senior housing projects.

Real estate properties are frequently regarded as high-value, low-risk investments. However, the promise of senior housing properties has been largely unexplored by many investment groups. Under Dan's leadership, Cougar Capital Management plans to acquire and build more of these specialized properties. Projections into alternative asset classes underline the likelihood of senior housing to see another boom. Occupancy rates rose significantly in 2023 and reports showed positive growth for eight consecutive quarters. Investors of all backgrounds have the chance to receive great returns if they act quickly on this opportunity.