Property Market Size and Property Types of Seniors Housing & Care

 

Property Market Size and Property Types of Seniors Housing & Care

What are the seniors housing and care property types?

Several types of properties are dedicated to providing both high quality housing and services to seniors. Seniors housing—independent living (IL) and assisted living (AL), which includes memory care (MC)—and nursing care (NC) are the primary property types and are differentiated by the care and services they provide to seniors. For example, independent living properties emphasize hospitality services and a care-free lifestyle for relatively healthy seniors, while assisted living properties cater to seniors who, although not bed-ridden, may need daily assistance with activities such as ambulation, dressing, and eating. Nursing care properties specialize in providing intensive personal and/or healthcare services.

The three major property types are found in campus types such as freestanding (e.g., independent living only) as well as in combined campuses, such as majority independent living (e.g., independent living combined with assisted living). An additional, recognized seniors housing and care campus type is the continuing care retirement community (CCRC), which typically includes all three primary property types on one campus.

How large is the seniors housing and care property market?

 

Inclusive of market rate properties with at least 25 units/beds, there are currently about 2.9 million units in slightly less than 22,100 seniors housing and care properties in the United States. As highlighted in the table, nursing care properties dominate the market in terms of number of units and properties. The total market capitalization of this investment seniors housing and care property market is estimated to be between $250 billion and $270 billion. Additional details of the number of properties and units that comprise the seniors housing and care property market can be found in the Section 1.1 of the NIC Investment Guide, Fourth Edition.

What share of seniors lives in seniors housing and care properties?

Based on 2010 population estimates, over 20% of the 12 million households headed by persons at least 75 years old reside in seniors housing and care properties. The demand for seniors housing and care is driven mainly by three factors: seniors’ desire for the less demanding, more carefree lifestyle offered by independent living, senoirs’ desire for the socialization afforded by a community of peers, or seniors’ need for the daily personal care services offered by assisted living, memory care, and nursing care properties.