As with any new breakthrough, be it technology, medicine, or even real estate, there will always be individuals and companies competing for their share of the respective market. In this case, the market is senior housing. Over the last 10 years, CBRE reports that senior housing units averaged 13.3% in returns. CBRE further stated that from December 2012 to the first quarter of 2016, senior housing units under construction more than doubled to 50,000 units. Between the interest in this property type, coupled with the returns it has been producing, there has been substantial growth in the development of these units, leading to property surplus.
The benefit of this market is appealing to many because of the promising returns, but the cost can be high, in addition to dealing with an over-saturated market. It is important that property owners understand how to maximize their investment, for instance owners should make their units stand out among the competition, they should also aim to constantly improve on existing units. Location is another important factor when considering development, as individuals purchase a unit for their amenities, nearby attractions, climate, and of course, price.