Greystone Retirement

Today, the industry

Seniors face housing factory to produce a record over the past three years has not closed completely, but the financing conditions are becoming increasingly difficult, as lenders and investors to upgrade their expectations middle of the credit crisis. Most offers are now going up again at lower prices, and sellers are starting to face this reality. On the other hand, with the highest demands of residents, life expectancy, the growing acceptance by consumers and supply exceeded, players will be able to capitalize on the need for quality independent living, assistance with life and continuing care retirement communities. Cap rates will rise in the second half of 2008, partly because of liquidity problems in capital markets and less aggressive bidding. Following this, sales of high-end properties tend to have lower levels of the CAP will not be as widespread as in recent years.

Consolidation is the entry

Ninety percent of senior housing will be owned by institutional investors in 2015, a reverse of the current structure of ownership 90% mom-and-pop today, according to a recent report released by Jones Lang LaSalle Capital Markets.

The Wall Street Journal reports that senior housing is skyrocketing in the next 20 years, with growing population and over, there will probably be a big change in ownership of the main dwelling. According to the U.S. Census Bureau, baby boomers older baby will turn 65 in 2011, the population will double between 2010 and 2030 from 35 million to 72 million. To the influence of older Americans in perspective, while the total U.S. projected to rise by 18% between 2010 and 2030, the population will increase by 78% during the same period. Consequently, one in five Americans will be 65 years or more in 2030. People aged 85 or above is increased from 4.2 million in 2000 to nearly 10 million by 2030 and 21 million in 2050.

Assisted Living Increase in rents

The resident of assisted living means paying $ 3,008 per month for housing and services, according to a recent national study by Genworth Financial. This figure is up 25% compared to $ 2,397 per month in 2004. The premium costs topped $ 4.900 per month in New Jersey, while the lower end is about $ 2,000 per month in Arkansas.

10 million Baby Boomers Face Alzheimer's

One of eight baby boomers, that translates into 10 million people will develop Alzheimer's disease in their lifetime, according to a recent study by the Alzheimer's Association. According to an update of ALFA, these results are particularly significant for assisted living providers who provide care for dementia. The study also notes that the age at highest risk for Alzheimer's disease begins at age 65.

Slower Living

Independent Living (VA) and CCRC have seen a slowdown in the absorption of their IT units. This slowdown is related to both the days lying on the market necessary for the sale of houses of residents and the decline in selling prices (potentially much their pension assets), whose product can be used for the deposit law entrance fees and monthly rent / service, according to consultants HTG. For existing and proposed facilities, it can also mean that residents' deposits, previously laid off are now disappearing entirely. This results in a longer period to absorb the proposed facilities and a potentially significant increase in pre-marketing and marketing costs compared to those initially budgeted. It is expected that the assisted living and nursing facilities experienced a less direct impact of this crisis that IL communities because they are a product more appropriate.

What other experts say

.