A report from Marcus & Millichap points to increased investment and robust construction as sure signs that the senior housing outlook is bright. An article in Multi-Housing News by Greg Isaacson summarizes the report and points out that, “Soaring healthcare spending is also expected to fuel demand for senior facilities, as national health expenditures are projected to account for 20 percent of gross domestic product by 2027, growing by 5.5 percent annually.”
Marcus & Millichap also sees positive trends on the supply side. “As the country climbed out of the past recession, demand for senior housing ramped up, particularly in the assisted living segment,” writes Isaacson. “Supply accelerated to meet the new demand, with absorption robust until 2014, when nationwide senior housing occupancy peaked at 90.1 percent.”
