The Best Ever CRE Show JF 4014: Seniors Housing Shortage, Aging Boomers and Rising Rents with John Chang
Aug 31, 2025
John Chang, head of research at Marcus and Millichap, dives into the pressing seniors housing supply gap fueled by the aging baby boomer population. He highlights the urgent need for construction, as occupancies and rents soar. Switching gears, he discusses the multifamily market's resilience amid rising rents and record absorption rates, warning of looming labor shortages. With a significant drop in new housing starts, Chang paints a compelling picture for long-term investors seeking opportunities in both seniors housing and multifamily real estate.
AI Snips
Chapters
Transcript
Episode notes
Imminent Seniors Housing Shortage
- The 80+ population is about to surge as baby boomers age into that cohort, creating exceptional demand for seniors housing.
- Construction has fallen far short of NIC MAP's projected needs, implying an impending shortage and upward pressure on occupancy and rents.
Seniors Housing Outperforming Peers
- Seniors housing occupancy and rent growth have rebounded to or above pre-pandemic levels across independent living, assisted living, and memory care.
- Net rent growth over six years rivals apartments, marking seniors housing as a top-performing sector.
Partner With Operators For Seniors Plays
- Avoid operating seniors housing without an experienced operator because it functions like running a healthcare business with operational complexity.
- Consider passive investing with high-quality operators if you lack sector expertise.