Is the residential assisted living market already saturated?

Question

Residential assisted living facilities seems to be a hot topic the last three years especially. I am a real estate investor and I am in the medical field so owning and operating a RAL is intriguing to me. For those of you who have experience in this market, do you feel like it is already saturated￼￼?￼￼

Gene Guarino · Answer

The fact is, people are aging every day.

The number of people that need and will need AL is increasing daily and for the next 20 years.

There are some areas that have more beds than needed available at the moment and many that are in need. Location is critical.

Even if the supply is greater than the demand, the good ones are full and the others are not.

Some of the keys to success;

1- Location, location, location. Hint... it's all about the demographics.

2- Understanding the demand, the competition and the financials

3- Positioning your RAL home so that you are full

Gene

Rhett Wilgers · Answer

I am aware of the hoops that need to be jumped through. Worth the effort if the business can cash flow to its potential. What I am most interested in are opinions of those of you in the industry regarding market saturation. How many RAL's in a certain neighborhood are too many? How can you research to see if the market can support another one?

Alina Trigub · Answer

@Rhett Wilgers

The opportunities are out there, but you have to be patient! If you want to start from scratch, you will have to go through a lot of hoops (permits, licenses, certifications, etc...). To find an existing business for sale will also take time, although it is possible.

Is the residential assisted living market already saturated?

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