Property Market Size and Property Types of Seniors Housing & Care

• What are the seniors housing and care property types?
• How large is the seniors housing and care property market?
• What share of seniors lives in seniors housing and care properties?

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.

Properties can have one of three campus types—freestanding, combined, or continuing care retirement community (CCRC) also known as life plan community (LPC). Freestanding properties only offer one level of care at the property; for instance, a property that only offers independent living would be freestanding. Combined properties offer at least 2 levels of care but are not CCRCs. For example, a property that offers both assisted living and memory care would be a combined majority assisted living property. Continuing care retirement communities offer at least both independent living and nursing care at the property, but often offer more than just these two levels of care. CCRCs tend to target an independent living customer seeking hospitality-style amenities and services with the security of knowing that future care needs will be met.

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 3.15 million units at roughly 24,500 investment grade seniors housing and care properties in the United States. Nursing care beds account for roughly half of the 3.15 million national units and nursing care communities account for roughly 46% of the national properties. The total market capitalization of this investment seniors housing and care property market is estimated to be $475 billion as of December 31, 2019. 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, Sixth Edition.

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

Based on 2019 estimates, over 18% of the 13.5 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, seniors’ 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.