Americans are looking for affordability and are migrating to less expensive cities with strong economies, according to a new report from The Wall Street Journal/Realtor.com. It makes some sense, then, that senior living and skilled nursing investors and developers might want to take a close look at those areas. But considerations beyond market affordability are important as well, according to one expert.
The Rapid City, SD, metropolitan area topped the first-quarter Emerging Housing Markets Index list, followed by Santa Cruz-Watsonville, CA; the North Port–Sarasota–Bradenton, FL; Santa Rosa, CA; Naples–Immokalee–Marco Island, FL; Boulder, CO; Coeur D’Alene, ID; Fort Collins, CO; Billings, MT; and Raleigh, NC.
Market affordability isn’t the only factor to be considered, however, Beth Burnham Mace, chief economist and director of capital markets research at the National Investment Center for Seniors Housing & Care, told the McKnight’s Business Daily.
“For senior housing, climate also makes a difference. You often see retirees move to warm climates as snowbirds and then move to be in better proximity to their adult children and grandchildren as their care needs change,” she said.
On the other hand, Mace said, although retirees might move to a colder climate to be close to their families, rarely would they move to a cold climate just for a more affordable senior housing opportunity.
When it comes to development, she said: “An important consideration for senior housing is also labor availability. Some of these markets were listed based on affordability for workers who can work remotely. A service industry such as senior housing needs in-person workers.”
Before rushing to build senior housing in trending cities, Mace said, investors and developers also should consider what healthcare services are in place there.
“Some of these locations may or may not have good medical systems and healthcare infrastructure needed to take care of older adults effectively,” she said.
