advice for real estate investing

The Secret Untapped Market of Residential Assisted Living

Knowing that we cannot turn back time — at least in this day and age — growing old is inevitable. So, how would you feel about investing in your future retirement before you reach that point in your life?  Investing in retirement means more than securing a large IRA. It means putting that hard earned savings to work.
cup of coffee

Growing your savings through investing in assisted living will help you reach your retirement goals faster and with ease because assisted living return on investment is usually much higher than traditional methods of investing.

The first members of our Boomer Generation started turning 65 in 2011 making assisted living real estate investing a large and growing market as a real estate investment.  A report released by The Pew Research Center found that over the course of the next 19 years, Boomers will account for 79 million retirees, which equates to over one-fourth of the total U.S. population. Research also shows that every day about 4,000 retirees will be turning 85 and an average of 70 percent of those seniors will need roughly 3.5 years of assistance for daily living.  Due to this shift in our population, retirement home investment opportunities and the industry as a whole as exploded.  For example, in 2005, the commercial real estate assisted living industry was worth $139 billion. By 2020, it is projected to reach $207.3 billion.  Residential assisted living, senior housing and memory care facilities, as well as nursing homes will account for more than two-thirds of revenue.

The growing of the industry is creating more assisted living investment opportunities, as well as for those that require special services. Most people are willing to pay whatever it takes to remain in their comfort zones. Residential assisted living provides such care as semi-independent living, transportation and, best of all, peer-to-peer relations.  Additionally, investing in senior living facilities will diversify an investors portfolio and enable them to take part in this industry is phenomenal. Currently, operating a small residential assisted living facility can have a potential gross income of more than $300,000 in its infancy.

You might be asking: “What is the difference between an residential assisted living facility and a nursing home?”  Sure, they both offer the same benefits: taking care of loved ones. But nursing homes are more like hospitals, designed to focus on those that cannot function independently.

Residential assisted living facilities focus more on helping elders enjoy their lives and independence. Not to mention, rental rates at residential assisted living facilities are generally lower than nursing homes because they do not provide the comprehensive care that nursing homes are permitted to manage.

So, what does this mean for an individual looking to invest in an assisted living facility?

It means that it’s a great time to capitalize on this growing market. With the improvements in technology and science, people are living longer and shying away from traditional retirement facilities.

invest in assisted living properties

Residential assisted living retirees enjoying life

Residential assisted living facilities allow retirees in reasonable shape to socialize and maintain their independence with minimal supervision. The untapped market is “not” the retirees themselves, but their children. In most cases, the children are the first to recognize when a family member(s) can no longer live without assistance. The willingness to seek help completely changes the dynamics of assisted care. This affords the industry further expansion and larger investment opportunities.

Growing your investments within the assisted living industry is likely to propel an investor’s portfolio to new heights, creating new opportunities and stable incomes.  This industry is growing rapidly and will continue to grow over the next 20 years.  Do not hesitate to invest in assisted living as it is fully changing the way assisted living real estate functions in the United States.

RealtyeVest is a real estate crowdfunding company that offers investors retirement home investment opportunity to capitalize on in addition to commercial, multifamily and on-trend properties across the United States.