What is a senior living REIT?

Senior living REITs are a type of health REIT that focuses on the booming business of retirement housing. Around 10,000 baby boomers are turning 65 every day. By 2030, 1 out of 5 U.S. residents will be of retirement age. Senior living REITs aim to create profitable cash flow for investors while looking at future trends.

Are senior housing REITs profitable?

Senior housing is no exception. While the demographics are favorable to senior housing facilities of all types, an oversupply could cut into their profitability and, thus, the profitability and cash flow of REITs. Like all REITs, senior housing REITs can be sensitive to interest rate changes, which may affect their performance.

How do senior housing REITs perform?

Senior housing REITs may perform differently than other kinds of REITs when there's an economic downturn, given their specific market. Economic downturns heavily impact sectors like retail and commercial real estate, while senior housing ordinarily has a more stable demand.