The national story for senior living housing is fairlystraightforward right now. There appears to have been overbuildingas developers overestimated current demand and they are nowadjusting their construction pipeline as they wait for the arrivalof baby boomers. At any rate, at bottom, senior housing is a localbusiness and based on various reports, developers believe that manyareas are still underserved and potential demand is simply a matterof identifying those markets. However, a recent report from theKroll Bond Rating Agency, points out that demand in this space canbe uncertain, and more importantly, can change abruptly.

Here are two reasons why, according to the report:

Delayed Retirement and Aging in Place

A report by the AARP Public Policy Institute found that 87% ofadults age 65 and older want to stay in their current homes as theyage. In addition, many boomers are deferring retirement with morethan 20% of Americans age 65+ working or looking for jobs, comparedto 10% in 1985, according to information from the US Census Bureauand the Bureau of Labor Statistics population data that wasanalyzed by financial planner United Income. BLS estimating that 13million Americans age 65 and older will be in the labor force by2024.