Demand for seniors housing in the United States will increase by 850,000 new units by the year 2030, a 75% increase from 2010, notes a recent report from PGIM, the global investment management businesses of Prudential Financial.
The data come from Senior Housing Analytics, the report notes. Other nations, such as the United Kingdom, Japan and China, also will see large increases in demand, according to PGIM.
“For the first time in recorded history, the old will outnumber the young,” said Taimur Hyat, PGIM’s chief strategy officer. “Our report demonstrates the profound impact global aging will have on individuals, businesses, governments and investors around the world.”
Around the world, aging will reshape consumer spending for decades into the future, according to the report, “A Silver Lining: The Investment Implications of an Aging World” (PDF). In the United States and the United Kingdom, real estate currently represents more than 40% of the gross assets of 65+ households, the authors say. U.S. baby boomers increasingly are attracted to active urban lifestyles and centrally located housing, they add.
Healthcare and technology also will expand substantially, driven by people aged more than 85 years, who spend four times as much on healthcare as those aged 45 to 64, according to the report. Dementia, Alzheimer’s, Parkinson’s, stroke and cancer are targets of venture capital firms’ operating companies, they say, and new businesses are creating, distributing and using technology-enabled medical services and devices to help older adults live more independently.