The aging of the U.S. population is transforming all aspects of the American healthcare system, including senior housing. The continued growth in demand in the senior housing market is attracting both equity and debt capital from all over the world, as senior housing real estate is viewed as a stable and generally a recession-proof asset that offers better returns than many other types of real estate.
And the options are expanding. Healthcare organizations looking to meet the growing need for high-quality resident care facilities and services have moved beyond traditional assisted living and nursing home facilities. Dedicated memory care properties, a specialized housing option for individuals with Alzheimer’s and dementia, have seen a particular surge in popularity in recent years.
Despite the rising demand, success in operating memory care facilities is not guaranteed. Healthcare organizations building and/or operating memory care properties — whether as stand-alone facilities or dedicated wings located in assisted living or skilled nursing facilities — face a number of unique business challenges that must be taken into consideration.