Editorial|&utm_term=|Website-Editorial-NAT(Website)|"> Auction.com reports that deal volume has increased 60% year over year, and as the Baby-Boomer generation hits retirement age, demand is only expected to increase. But is it in danger of being overbuilt?

The firm's EVP Rick Sharga spoke with GlobeSt.com exclusively about what we should know about this topic.

GlobeSt.com: How much of a threat is oversupply in the senior housing market?

Sharga: There's a small chance that we might have a short-term oversupply of senior housing as this growing market sorts itself out. But realistically, investments in this sector are simply getting back to more normal levels after a few years of below-average growth. The real question is how good a job the industry will do meeting the future needs for various segments of this category: will there be too much assisted-living inventory and too few nursing homes? Forecasting how much need/growth there might be in each of these sectors is going to be challenging because there's really no existing model to use as a reference.

GlobeSt.com: In which geographical areas of the country do you expect to see the most growth in senior housing?

Sharga: The obvious answer here is Florida, which is already seeing growth. In general, the South—warm-weather states—will likely see more growth than cold-weather states. But there are pockets in the Midwest, like Pittsburgh and parts of Michigan, that have relatively high percentages of seniors already. If those seniors opt not to move, we could see growth in those areas.

GlobeSt.com: Is there a typical size for today's senior-housing communities and a particular price point for sales?

Sharga: Not really. As noted previously, the senior-living category is evolving and turning into a multi-tiered ecosystem. 55+ independent-living communities, assisted living, home healthcare, skilled nursing—each of these categories will develop its own “normal” and likely be heavily influenced by local market demographic and economic trends.

GlobeSt.com: What else should our readers know about the senior housing market?

Sharga: The senior-housing market is one of the most-likely growth segments over the next couple of decades and a crossover opportunity for investors who are interested in both commercial and residential real estate. And as the U.S. population continues to age, and looks for new types of housing to meet their needs at various life stages, there will be opportunities for investors to create entirely new categories of senior housing to meet those needs.