There are more than 100,000 Americans turning 65 everyday, a strong argument for developers that are looking to diversify their opportunities by entering the senior housing market. National Real Estate Investor staffers Michael Okaty and Matthew Jassak point out that while the seniors housing market can be lucrative, there are multiple distinct factors that a real estate developer should consider.
One of these distinct factors is regulatory risk:
Local and federal regulatory scrutiny has drastically increased in recent years. Assisted living communities have seen an increase in licensing and regulatory oversight. State and federal governments have also attempted to tighten regulations at skilled nursing facilities regarding fraudulent and ineffective billing practices. With increased regulation come higher barriers to entry, and an emphasis on asset management for developers already playing in the industry.