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Adult and Retirement Communities
65137041INDUSTRY SNAPSHOTAdult and retirement communities were among the housing industry's prize sectors in the 1990s, and demographics promised a healthy market well into the twenty-first century; the elderly portion of the U.S. population was not expected to peak until past 2010. And while supply outpaced demand in the late 1990s, leading to some minor market jolts in 1998 and 1999, there were few fears of anything short of explosive growth in the 2000s. However, the early years of the first decade of the 2000s brought a depressed economy, causing many potential retirees to extend their time in the workforce, and consequently there was an overabundance of retirement housing. Amidst these conditions, investors became more cautious and senior housing construction capital became extremely scarce. However, by 2006, industry conditions had improved. Individual and institutional investors had begun to invest in housing for older adults again. While the number of public companies involved in the industry had declined, those that remained saw their stock prices skyrocket.By the twenty-first century, America's elderly population was rapidly expanding, with women aged 80 and older as one of the fastest-growing segments of the U.S. population. This trend was expected to continue, as approximately 77 million baby boomers would enter their retirement years, beginning in 2010. The Administration on Aging estimated that by the year 2030, the United States would have more than 85 million people over the age of 60. Further, the U.S. Census Bureau's projections reflected an increasingly aged population as well. In 2000, there were approxima...See the full content of this document
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