Senior housing: Some of what we already knew
We know that DFW renters have been older and richer in the last few years.
We know that a lot of people, especially the younger set, have a large amount of outstanding debt.
We know that, relative to industries (some are higher than others), wages -- i.e. base salary, bonuses, general income -- has been flat for decades.
We know that there are 21M+ Baby Boomer homes that need to be bought … and we are not entirely sure who will buy them.
We know that the market is changing pretty rapidly.
Senior housing: Some new information and wrinkles
Here's an article on Dallas Business Journal with the CEO of Juliette Fowler Communities, who plans to break ground in January or February on a $24 million housing community in East Dallas for limited-to-moderate-wealth seniors. The general plan is that some of the 144 units to be built at 230 S. Fulton Street will be reserved for residents who earn 30 percent of the area median family income. Some will be reserved for residents who earn 50 percent of the median and the rest of the units will be available to people who earn 60 percent of the median. In Dallas, the area median family income is about $84,000.
The CEO notes a new reasons for increased retirement numbers in Texas, including:
- Cost of living
- No state income tax
- The California migration (huge demographic story of the next 10 years)
The problems with an increase in the senior housing market could include:
- Are people scared to move into independent living until they see where COVID lands?
- A "supportive services" model -- which would prevent seniors from having to enter higher levels of care, i.e. nursing homes -- are attractive to families looking for good housing options for loved ones, but they're not necessarily attractive to developers, because they're not high-margin products
- To quote the CEO: "When I look at the rising amount of people who are going to be in the mid-market, we are far behind the curve because we don’t have enough of these kind of deals in development to be ready as they begin to age."
All signs point to the first set of bullets overwhelming the second, and a big market for senior housing existing in DFW in the next 5-10 years. In fact, right before the pandemic shutdowns started around March 17, BisNow had done a series of events on the DFW senior housing market.
Where does Whiterock stand with senior housing?
We don't place as much senior housing, but we're starting to see more interest in senior housing for the DFW area. Right now on our site, we have 152 complexes listed, featuring over 1,700 photos and 830 floor plans. You can check all the options out, and then sort by geography (right side), here:
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