30 Aug The Numbers Don’t Lie – Why Residential Assisted Living Will Be Your Next Investment
There is undeniable mounting evidence that points to Residential Assisted Living as the next big investment opportunity in America. Assisted living and senior housing are hottest topics in real estate, business and investing and will only be getting hotter for the next 20 years. Many of today’s baby boomers are facing the reality that their parents need assistance in their current and future care. These are people who are not ready for a nursing home and yet they can’t stay at home alone.
Residential Assisted living is the best alternative for millions of these seniors and this isn’t going unnoticed by investors and health care providers. As the Boomers continue to get older and live longer, the need for senior housing and assisted living is growing by the day. The opportunity this provides for entrepreneurs, lenders, investors, equipment suppliers and support service providers is increasing at an accelerated rate.
Just a few sobering facts…
According to data from Centers for Medicare & Medicaid Services (CMS) as well as data from the Census Bureau, by 2029 the senior age demographic will experience accelerated growth and will account for more than 20 percent of the total population. It is also held that by 2050, seniors aged 85 years and older are estimated to grow faster than the entire working age population. And with the elderly population growing faster than their younger counterparts, healthcare costs are projected to escalate significantly.
Between 2016 and 2026, healthcare expenditures in America are expected to reach nearly 20 percent of the entire national Gross Domestic Product, with the spending growth of Medicare increasing from 3.6 to 5.5 percent. While on face of it, those margins don’t sound sizable, but when the GDP is currently 18.57 trillion dollars, 20 percent of that is a significant sum.
Ok. Those are remarkable numbers, but what does it all mean?
Healthcare providers and organizations are beginning to turn their focus toward elder care as costs are slated to rise significantly with elderly individuals requiring additional services compared to their younger, healthier patient population. With this rise in healthcare costs, experts project a slow planned shift of elder care from hospitals and skilled nursing facilities to the home.
In a survey by the New England Journal of Medicine and the BDO Center for Healthcare Excellence and Innovation nearly half of all healthcare executives, clinical leaders, and clinicians recently surveyed indicated that their organizations plan to prepare for this senior population growth by investing considerably in home health services by 2020.
Only 12 percent of healthcare leaders surveyed anticipate investing in skilled nursing facilities to respond to the aging population, while even fewer plan to invest in long-term acute care hospitals (7%) and inpatient rehabilitation facilities (6%). These survey results show that providers are aiming to control their costs by caring for elderly patients outside of the practice or hospital system.
So what does this mean for you?
We can’t emphasize enough just how significant these numbers are, and generally, when investors see a trend this compelling and inevitable, it elicits only one response…How can I capitalize on this?
And unlike most investment trends, this one IS inevitable. People aren’t going to stop growing older. And as Americans continually live longer than ever before, those extended life spans come with longer periods of needed assistance during the twilight years.
The fact remains that just about every single one of us will end up encountering assisted living, whether for ourselves or those we love. Nursing homes around the nation are not prepared for this growth, and as plenty of evidence has shown, these big box facilities aren’t places that you would want to depend on to care for your loved ones.
At the Residential Assisted Living Academy, we are providing a better way. A better way to care for our seniors, with respect and dignity. A better way for you to invest… To get out of the rat race… To secure your family’s financial
Gene founded the RAL Academy to help people like you, and so you could go out and help others. We don’t want you to miss this opportunity and it is crucial to get in on the ground floor.
Would you like to know how Residential Assisted Living holds the key to your future? Come out to our 3-day training and see why this is an unmissable investment opportunity.
Also, join us October 4-7 at the Residential Assisted Living National Convention, where more than 500 RAL owners, investors, suppliers and service providers will meet to equip each other with tools and networks to meet the needs of the Silver Tsunami of Seniors that is hitting the shores of America. This convention is your opportunity to be at the forefront of the incredible opportunity in residential assisted living right now.
If you have any questions about these important events or how you can get involved, let us know. We would love to hear from you.