How big is the market for seniors housing? The Administration on Aging recently reported that the number of U.S. residents 65 or older will hit 72.1 million by 2030. That’s an increase of more than 50 percent since 2000.
As the administration says, people 65 or older represented 12.4 percent of the population in 2000. By 2030, they’ll represent 19 percent.
It’s little surprise, then, that Plymouth, Minn.-based Dominium — a developer and manager of affordable-housing projects — is now making a big push in the senior-housing market. The company, which will focus its efforts on independent senior living, is now developing a pair of senior-housing communities, one of which is The Cavanagh, a 130-unit development being built in Crystal, Minn.
Ron Mehl, senior developer with Dominium, said that the country’s — and the Twin Cities’ — demographics support the company’s extra push into this market.
In a phone interview, Mehl pointed to a recent report by the Metropolitan Council saying that in 2010, people 65 or older made up 10 percent of the population in the Twin Cities area. By 2030, this group of residents will make up 20 percent of the population here, according to the report.
And these people will have to live somewhere.
“The demographics speak for themselves,” Mehl said. “We have a large population of aging Baby Boomers. We have longer life expectancies. We will need more seniors housing.”
As more proof of just how strong this market is today, the National Investment Center for the Seniors Housing and Care Industry, reported that 2011 saw more than $25 billion worth of senior-housing transactions. That is the best year for seniors-housing activity since the real estate boom years of 2006 and 2007.
A survey conducted in the fourth quarter of 2012 by National Real Estate Investor magazine and Senior Housing Investment Advisors, found that 65 percent of respondents said that they expected investment activity in the seniors housing market to rise during the following six months.
And today’s seniors have high expectations for their housing, Mehl said.
“They want all the amenities that you’d find in a single-family home,” he said.
Seniors want large kitchens and plenty of storage areas. They want extensive common areas that include salons, exercise facilities, theaters and party rooms. Every home or apartment needs washing machines and dryers.
These properties must feature extensive outdoor amenities, too. This includes gazebos, gardens, outside seating areas and trails.
Dominium is willing to commit to these amenities, Mehl said. It’s the only way to serve this market. And the boom in the seniors market is no short-term thing.
“The demographics are telling us that this isn’t going away,” Mehl said. “Older Americans are becoming a bigger percentage of the overall population. And they have very specific needs and wants from their housing.”
