"To put that in perspective, more than 10,000 Americans turn 65 every day, according to the U.S. Department of Health & Human Services. "The combination of the silver tsunami and a halt on development during COVID has created a supply-demand imbalance that has rarely-maybe never-been seen in commercial real estat"
Senior housing has shifted from a neglected corner of commercial real estate to the hottest sector. Transaction volume reached $24 billion on a rolling four-quarter basis through the end of 2025, the highest level in a decade. Occupancy improved to 89.9% in primary markets and 90% in secondary markets, with more units filled than lost for 19 straight quarters. Cap rates fell to 6.2%, indicating stronger investor confidence, and 85% of investors expect further cap rate declines. Demographics are the main driver, with the U.S. population aged 80 and older projected to rise 36.6% over the next decade, far outpacing total population growth. More than 10,000 Americans turn 65 each day, increasing pressure on housing and healthcare systems.
Read at Fortune
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