You might have heard that there has been some “overbuilding” in assisted living and senior housing communities. But what does overbuilding really mean and does it actually exist? As seniors age, there are many that need help and care in their daily lives. Some need more help than others. They are unable to live alone and will need a bed in some type of senior housing facility. There are generally two types of senior housing: big box facilities and residential assisted living facilities. Right now there’s a boom in senior housing being built all over the country in both types. Facilities are popping up all over the country, many are of the big box variety, but are we overbuilding?
The answer is yes and no.
There are some areas that are overbuilt – this means there are more open beds than there are seniors to fill them currently. But the areas that are overbuilt are few compared to the markets across the U.S. and the rest of the globe that need more beds right now! The current building in senior housing is making up for the lack of building during the Great Recession and in preparation for the future demand. That future demand is unstoppable and can be easily quantified on charts showing the aging of the population. There’s an average of 4,000 people turning 85 each day. That’s around 120,000 seniors a month or 1.4 million seniors a year turning 85! The baby boomer generation is aging, and there are more than 77 million of them. It’s a silver tsunami of people, and most will need help and care as they age in the form of a senior living facility. Many areas have few if any senior living facilities. Many of the ones that do are not up to date or able to keep up with the rising demand.
This rising demand is a huge opportunity!
The rising demand is a golden opportunity to do well and do good at the same time. Large corporations and hedge funds are investing millions into the senior living facility market. They know that over the next couple of decades there will be millions of people in need of this service and billions of dollars to be made while helping. You can start your own large facility, if you have the means, and there are opportunities to get involved, but there is another way! That way is residential assisted living. Residential assisted living is taking a single family home and converting it for senior living. It can be a highly profitable business in a high-quality setting, with properly trained managers and caregivers. It’s a warm home environment as opposed to the cold hotel feeling of a big box facility. There may even be a few in your neighborhood and you didn’t even realize! The Residential Assisted Living Academy is here to help you take advantage of this opportunity by offering our unique expertise and exclusive resources every step of the way! We can help you understand the ins and outs of the business, what market research you really need, how to convert a home, and so much more. Our Assisted Living Network is the largest in the nation with thousands of members and more enrolling each day. Come join us!
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