Here’s what happened last month in senior living.
PGIM, Prudential Financial’s new global investment management group, anticipates tremendous growth in senior housing real estate in the next 20 years. The group forecasts that, from 2010 to 2030, demand for new senior housing units will increase by 850,000. America’s aging population, high senior housing occupancy rates, and the relative stability of the senior housing market, even in the face of economic turmoil, will contribute to this boom.
Along with senior housing, PGIM identified four other strong investment opportunities tied to aging: multifamily housing, life sciences real estate, biotech and pharmaceutical companies, and high-tech medical services and devices.
Source: Senior Housing News. Soaring Demand Should Make Senior Housing Catnip for Investors.
A recent NIC report found that plummeting occupancy rates in skilled nursing facilities are likely caused by an increase in short-term stays and do not necessarily translate to loss of revenue. Additionally, the report found that managed Medicare patients increased slowly (1.3%) from 2011 to 2015, while Medicare rates oscillated, averaging $500 per day. Other metrics tracked in the report include further occupancy data, revenue by sources, and information on property quality.
The NIC released the first of what will be regular quarterly reports on the state of skilled nursing in America, correcting a long-time gap in reliable, timely information about the sector. The NIC spearheaded efforts to provide this data in the hopes of attracting more investors and generating more capital for the quickly changing industry. The NIC says subsequent reports will provide a more granular look at the market, differentiating trends in specific states and urban areas.
Young people of color are more likely to consider senior living for themselves than for their aging parents, according to a new report from Caring.com. The study found that, though only 37% of African Americans and Hispanics would consider moving their aging parents into senior living, 46% of African Americans and 49% of Hispanics would consider moving in themselves. This marks a potential future turning point in the predominantly Caucasian senior housing population.
Of those hesitant to move into senior housing, the top three concerns were: wanting to live independently, needing to be with family, and an unfavorable perception of senior housing.
Source: Caring.com. How Do Race, Age Affect Attitudes Toward Senior Living?
Utah and Missouri are considering bills that would allow residents in assisted living communities to have cameras installed in their living quarters. The two states would join Illinois, New Mexico, Oklahoma, Texas, and Washington, which have enacted similar laws for skilled nursing facilities. These laws have been trumpeted by family members seeking to protect loved ones from elder abuse, theft, and other crimes. The bills raise privacy concerns for industry leaders, who worry the monitoring will be intrusive for residents.
Source: Senior Housing News. Granny Cam Laws Target Assisted Living.