Suitable Markets for Senior Housing

Many think that a sunny, warm climate location will be sufficient for retirees. While that is not off from the truth, there are also sub-markets that make it ideal for Senior Housing to thrive.

Just like any investors seeks out the best location, location, location, to invest on an amazing project, the same holds true for Senior Housing. 

Not all investments requires the ideal location, as some would argue this topic - Is the glass half empty? or Half-full? type scenario.

Some investors like to invest within the "Line of Progress." If you are unfamiliar with the term, is like when you see new developments, rehabilitations of properties occurring with a a few miles radius. You as a savvy investor, start investing or buying or selling properties in the direction the movement is coming. 

Perfect example, yesterday evening I was at the International Association of Professional Women monthly meeting. We had a delightful happy hour event, at a recently (a few years old) rehabilitated city landmark. I hadn't been there in so long, it was beautifully done. Without deviating too much, as I left the premise I noticed this ugly, run down, mobile home park (that obviously did not fit the current constructions in the area), my first thought was - Oh, the owner of the park is holding down until developers approach him with the right $$ amount.  This is a clear indication of the "Line of Progress"

Both the seller and buyers will definitely benefit from the transaction. 

The kicker question would be how long has the owner of the mobile home park been the owner? May he saw the construction movement and decided to buy? or he saw and said, "I'm staying put until they make me an offer that will move me."  Who knows?

The Line of Progress plays the same role with Senior housing, but instead of being solely dependent on watching developers, watch the demographics. Where do they live? Where are they moving to? What do they do?

I can speak solely for Florida and I see it. I see the demographics moving from one part into another, and within that there are sub - markets that they take Residence and these are the "Sweet Spots" to cater to their exact needs. 

A city if very big, but perhaps within the outskirts of the well-known city would make for the  ideal location to set up shop - Senior Housing.  You wouldn't develop a Senior housing community in the middle of a university driven city or party town. 

These locations are strategic, keep an eye on where the "big ones". Analyze the location and why that made a 'good decision' for them. 

- Primary Markets - well known for all their senior housing, may be too saturated for a new kid on the block.

- Secondary markets - may be ideal, if situated properly.

- Tertiary markets - may not be too developed into Senior housing as part of their community, local market. Demographics may not have arrived yet.

Happy Scouting!

Zurama