A Housing Certainty

I’ve got a housing play that’s guaranteed market growth in the next few years.

Senior communities basically fit into one of three broad categories: independent living, assisted living and skilled nursing facilities. Independent living communities let seniors live independently while keeping resources like dining and community centers at close call. Assisted living facilities provide an increased level of medical attention, and skilled nursing facilities — better known as nursing homes — provide a higher tier of medical care.

If you think that the senior living business isn’t sexy, you’re dead wrong. An aging baby boomer population and ever-increasing life expectancy here in the U.S. guarantee that the market for senior living communities is due to swell in the coming years.

Between 2000-2050, the U.S. Census Bureau expects the population in the United States to increase by 49%. During that same time, the 65-and-over population is projected to increase by 147%, to 86.7 million men and women — a full 21% of the population.

Population Growth Over 65

With healthy occupancy currently in place for most senior communities, it’s clear that aggressive expansion will be necessary in order to keep up with demand. Established business in this sector stand to do very well. With limited leverage and a highly expandable business, the company I just told my PSF readers about is one of the best-positioned senior living companies to expand its footprint. You can get the ticker by subscribing, here.

The Daily Reckoning