PHILADELPHIA: The supply of senior housing is expanding at such a rapid clip it is raising concerns that builders are racing ahead of demand.
Analysts said the building spree could lead to higher vacancy rates and lower rent increases for real-estate firms that own housing dedicated to seniors.
The potential overbuilding will likely add to the pressure on over 50s housing providers, analysts said.
“The construction really hasn’t slowed, and it’s continuing to be an issue,” said one analyst who tracks the sector.
“It is difficult to predict what type of living arrangements they will seek out as they age, and when they may need senior housing, particularly given longer lifespans and changing attitudes about such types of housing,” he added…