Senior living and long-term care is going to change significantly, and the industry is not ready to handle the number of baby boomers entering this space over the next 20 years. This wave of change is thanks to the wealth boomers have and the fact that they are looking to spend it on their health and to extend their life span as much as they can.
These are the predictions of Ken Gronbach, a demographer and futurist, who presented a webinar recently on how demographic trends drive transformation in real estate, as reported in Senior Housing News. The webinar was hosted by real estate investment and services firm Marcus & Millichap.
With the oldest wave of boomers only starting to think about senior living, the bigger shift in the space, predicted by Gronbach is when the last wave of boomers (that is those born between 1960 and 1965) turn 75. His estimates when it comes to the wealth boomers have? A collective $12 trillion in banking assets, $20 trillion in stock and $70 trillion in real estate holdings.
Boomers possess the most real-estate wealth in the U.S. for nearly 20 years, and they’re also tending to hold onto their real estate for longer, given that they’re interested in aging in place. What this represents to people in the industry is an opportunity to offer more home- and community-based services.
For more on how the longevity economy is expected to impact real-estate markets, you can read more on Senior Housing News.