Seniors Housing is Not About the Boomers

CHICAGO-The problem with the senior housing industry, says Peter Linneman, the Albert Sussman professor of real estate at Wharton, chairman of many investment consultancies and noted author – is that even he doesn’t understand it. The newer niche industry lags decades or more behind in its reporting data, and, in order to encourage investors, needs to be more transparent in how it operates, he said. He made these observations speaking as the keynote at the National Investment Center for the Seniors Housing & Care Industry’s Western Regional Symposium this morning.

He also said that the industry’s main message, “The Baby Boomers are going to need seniors housing soon,” is incorrect. “The average age of the Boomers is 54 years old,” Linneman says. “You’re not going to see a Boomer impact in this industry for at least 15-20 years.”

Bob Kramer, president of NIC, said at a press briefing after Linneman’s presentation, that he agrees with the economist. He said the average age of residents at independent living and assisted living housing has been late 70s to mid 80s. “The way the Boomers right now are involved in seniors housing has been in visiting the locations with their parents,” he said. “The Boomers will have a strong impact on this industry, but that’s longer down the road.”