NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases a new report, Are the Boomers Ready for Senior Housing?
When the curtain closes on 2019, all of the baby boomers will be 55 years or older. In recent years, the anticipated demand from this large and aging cohort has led to an increase in supply for assisted living (AL), independent living (IL), as well as active adult and senior apartment communities. While there has been a recent slowdown in construction, the sector continues to face challenges from a number of demand factors including a later-than-expected move-in age, delayed retirement, affordability, and even technological and social media advances.
After several years of annual inventory growth exceeding absorption, the situation reversed course in Q3 2019, with absorption in the AL and IL segments outweighing inventory gains. While this is a positive change, it will take time to absorb the excess inventory, which could limit any meaningful near-term improvement in occupancy rates. It appears that builders may have overestimated the current demand and timing for AL and IL properties and have been adjusting their construction pipelines as they wait for the arrival of baby boomers. However, based on various reports, developers hold the view that many areas are still underserved and potential demand is simply a matter of identifying those markets.
To view the report, click here.
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
