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Investors Bullish on Senior Housing as Construction Slows

September 20, 2019

The outlook for the senior housing sector is bright, according to a new report by Marcus & Millichap, as an aging U.S. population, investor optimism and a construction cycle that shows signs of slowing point to increased demand-side pressure on the property type.

The national market report notes that the U.S. population of those aged 75 and older is projected to surge by 5 million over the next 5 years, a 22 percent gain—accelerating from the 2.8 million people added to the cohort over the previous half decade. Soaring healthcare spending is also expected to fuel demand for senior facilities, as national health expenditures are projected to account for 20 percent of gross domestic product by 2027, growing by 5.5 percent annually.

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