Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

SENIOR HOUSING: DEMAND DRIVERS As Baby Boomers continue to age, demand for senior housing assets will grow

• Depending on facility type, average move-in age can for a resident can range from 75 (active) to 83 for assisted living. • The population in the 75+ age range is expected to increase by over 50% in the next twelve years, with current senior housing capacity and expected growth falling far short of demand. • With expected population cohort growth and current senior housing usage, the sector will need to growth annually by 35,000 units. • Construction starts have been constricted due to the lack of liquidity, dropping below 5,000 units started per quarter for the past year. This challenge opens opportunities for those with available capital to begin building out developments to address the substantial oncoming demand. • Affordability remains a challenge, as higher care facility types such as memory care remain out of reach economically to a large segment of the population.

Rapid Senior (80+ years old) Population Growth Will Outpace Planned Supply

35

3.5

30

3.0

Millions

Millions

25

2.5

20

Supply Shortage

2.0

15

1.5

10

1.0

5

0

0.5

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

Demand (80+, LHS)

Supply (Avg., LHS)

Population (80+, RHS)

Source: Moody’s Analytics, NICMAP Vision, Cushman & Wakefield

/ 24