Lifestyle opportunities for seniors, Active Adults Will Lead Housing Recovery in Florida, Sunbelt Markets, says Leading Real Estate Veteran

MAITLAND, Fla. --- Older Americans’ demand for more, better and more affordable lifestyle opportunities will likely drive the housing industry recovery in Florida and other regions that appeal to seniors, according to longtime regional real estate investment expert George Livingston. Livingston, chairman of Green Global Investments in Maitland, said longtime demographic trends point to a wave of demand for senior housing opportunities as the population ages. “More than 10,000 Americans reach retirement age every day.” Livingston said. “The population of senior adults aged 85 or more in the U.S. is growing faster than our population as a whole, and it will increase by 20 percent through 2024. With little new development underway, supply is restricted, Livingston explained. “Current new development of senior housing is modest at best, and currently property valuations are below normal despite low interest rates,” Livingston said. Those factors point to powerful opportunities for investors in senior housing as risk capital comes off the sidelines. Demand is strongest for specialized housing such as assisted living facilities. “Assets with dementia units are especially in high demand,” Livingston said. “More than five million Americans have Alzheimer’s disease and a new case is diagnosed every 60 seconds in the U.S.” “Cap rates for properties that include dementia units range as high as seven percent,” Livingston said. Nationwide, independent living facilities are about 85 percent occupied, substantially below past highs of about 92 percent. But occupancy has been on the rise through the past seven quarters and is expected to improve through 2013. Rents are projected to increase by 3.5 percent. The graying of the baby boom generation will result in a greening of the housing industry,” Livingston said.