With so many Baby Boomers set to retire and the senior living housing landscape changing to meet the requirements of a new generation age 55+, real estate developers are looking at several areas for growth. According to an article by Senior Housing News, developers, operators and entrepreneurs have shown “strong interest” in the following five markets so far in 2013: Texas, the Phoenix/Scottsdale Arizona area, The Carolinas, South Florida, and Atlanta, Georgia.
Texas makes sense, with snowbirders looking for a change and milder winters. What’s more, there’s no state income tax. According to the article, more than one in ten Lone Star State inhabitants is 65 or older, accounting for 10.5% of the population. While that’s beneath national average of 13.3%, developers say “they’re seeing an influx of boomers thanks to some of the state’s retirement-friendly attributes.”
When it comes to the Phoenix/Scottsdale area, while the recovery process there may be slow, the market demographics are still very much in the senior living industry’s favor: The median age for residents of Maricopa County, which encompasses Phoenix, Scottsdale, and nearby Sun City, was 73.4 years old as of 2010, compared to Arizona’s median age of 37.1 years and the national median age of 36.8 years. The area attracts a lot of younger retirees with its temperate climate and low property taxes, among other features. And although a survey of baby boomers conducted in 2012 showed higher variation in retirement destinations among pre-retirees, Arizona still continues to be a “top destination” for the 55+ crowd.
The Carolinas may be the new kid in town in terms of senior living development if favorable demographics, lower barriers to entry, and growing consumer preference are any indication. The Carolinas are two states with fairly healthy economic conditions and good demand, according to Charles Bissell, MAI, of Integra Realty Resources’ Seniors Housing & Health Care Specialty Practice. “We’re hearing a lot of developers talking about projects in the Winston-Salem, Raleigh-Durham, and Charlotte metro areas,” he says. In 2011, in fact, SmartMoney.com named North Carolina as an optimal place to retire due to its living costs that are 6% lower than the national average. And while the cost of living in retirement-friendly South Carolina cities like Bluffton and Charleston is slightly higher than the national average, the state’s low taxes are considered a major plus for retiring seniors.
The Sunshine State has always been a magnet for retirees and after some challenging economic times, developers are looking at South Florida again. “We will continue to look to develop in the Florida market,” says Kevin Maddron, senior vice president of fund management for the healthcare sector at CNL Financial Group, which sponsors CNL Healthcare Trust. ”We do see a lot of demand in the Florida market, and particularly where we see a lot of demand being generated is in major markets: Tampa, Orlando, and the West Palm Beach area.”
Atlanta, Georgia is also heating up as a hotspot for senior living. Its temperate climate coupled with moderate living costs make the state attractive to seniors on fixed incomes. All major Georgia cities—including Atlanta—fall below the national average for cost of living, according to the 2010 American Chamber of Commerce Research Association.
IPOAUSA can help you tap into this growing industry, providing insurance programs for Senior Living housing in new or re-energized hotspots that are catering to retirees. We offer a Senior Living insurance program that insured by Lloyd’s of London (non-admitted), providing quotes for everything from property policies with wind, package x-wind, package. Give Stefan Burkey a call at 877-653-IPOA (4762) for more information.