Senior Living Trends and Investment Opportunities | Morgan Stanley

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The ageing population is driving changes in housing, healthcare, and investment trends for seniors.

The growing ageing population is reshaping U.S. policy, consumer trends, and investment opportunities. By 2060, 25% of Americans will be 65 or older, creating demand for senior housing and healthcare services. Real-estate investment trusts (REITs) that manage senior living facilities are expected to benefit, with occupancy and rent growth rising due to limited supply.

Baby boomers, with an average of $250,000 in home equity, are well-positioned to afford senior living, but many prefer to age in place. This trend, alongside increased at-home healthcare services, is expected to drive the home healthcare market to $161 billion by 2030, growing at 2.9% annually. Technologies like telehealth and remote monitoring will support this shift, improving outcomes and reducing costs.

Continuing-care retirement communities (CCRCs) offer another investment avenue, particularly through municipal bonds. Despite COVID-related setbacks, occupancy rates are recovering, and bonds tied to CCRCs now outperform the broader municipal market. Outpatient care centers, favored for their convenience and lower costs, are also set for growth as Medicare coverage expands to include more services outside hospitals.

As senior care shifts to the home and outpatient settings, investors should watch for opportunities in both real estate and healthcare, as both sectors stand to grow significantly.
Read the full document here: https://bit.ly/3A8HccU.

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