Overbuilding Alert: Demand For Senior Housing Falls

You know what they say about too much of a good thing—steady returns from senior housing have spurred overbuilding, which will mean oversaturation by Q4 of this year, experts say.

Over a five-year period senior housing returns have delivered 14.8%, according to a recent CBRE report. Understandably, more investors have been eager to get returns like that, and the number of senior housing units under construction has exploded from just under 23,000 in 2012 to nearly 50,000 at the start of 2016, National Real Estate Investor reports.

A lot of new supply will hit the market by the end of this year, and developers are already looking for new markets to expand into. Larry Pusateri, a developer in Chicago, says that city is already overbuilt. [NREI]

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