Seniour Housing Investment
Investing in Senior Housing
Senior housing occupancy in the United States is at its highest level since early 2008, fueled by today’s aging population. By the year 2020, 12 million seniors will require long-term care services.
With 10,000 Baby Boomers turning 65 every day, Meridian at San Francisco North Bay recognizes a compelling opportunity to provide investors with access to this quickly - growing sector of healthcare commercial real estate.
The Average occupancy rate for senior housing properties was 89.7% during the fourth quarter of 2013. We believe the ever-growing housing business combined with the boom in the demand of healthcare services is providing considerable investment opportunities – those poised for both income and long-term growth.
Our Partner
Meridian Senior Living is our Operations Management partner for the Senior projects.
When it comes to property management, US Global is proud to rely on the Meridian Senior Living partnership.
Senior living facilities are managed by Meridian Senior Living (“Meridian”). The company provides loving care to nearly 8,000 seniors in a safe, caring, and nurturing environment that allows them to live the remainder of their life in a place they call home. Meridian is committed to serving the individual needs of our residents as they age in place from Independent Living through Assisted Living and is listed as the 3rd largest Memory Care provider in the country. With thousands of dedicated employees operating in over 15 states, Meridian combines unparalleled industry experience and comprehensive national regulatory knowledge to form one of the most dynamic and highest performing senior housing providers in the nation. Meridian understands the importance of making each day a little easier, more comfortable, convenient, enjoyable, and secure.
Healthcare Demand
The number of Americans 65 and older will increase from 47.8 million in 2015 to 79.2 million by 2035, which is a growth rate that is four times the rate of the overall U.S. population. We expect demand for senior housing to accelerate over the next several years as a greater percentage of the American population ages and lives longer.
We believe this group of seniors will rely more on third-party providers as their health deteriorates. Approximately 15% of Americans between age 75 and 79 seek assistance with activities of daily living (eating, bathing, dressing, etc.). This number increases to 30% for those age 80 and older, and approximately 70% of Americans older than 65 will need some form of help with these activities for months or years as they age.
New Supply is Not Meeting Demand
While the elderly population is growing, the rate of senior housing new construction decreased during the recent recession. According to the National Investment Center for the Seniors Housing Care Industry, units under construction began a significant decline starting in 2008 and continued at a slower pace through 2012. While construction has recently regained momentum, we believe demand for senior housing facilities will remain above what the current and near-term senior supply canaccommodate.
Increased National Healthcare Expenditures
U.S. healthcare costs are projected to nearly double to more than $5.2 trillion by 2023, comprising nearly 19% of GDP.8 An opportunity exists to reduce costs for both individuals and the government by shifting patients from higher cost settings such as hospitals to lower cost settings such as needs-driven senior housing. This potential transition may further increase demand for senior housing facilities.