The Age-Restricted Apartment Opportunity
By Tim Wang & Julia Laumont, Clarion Partners
Age-restricted apartments appear to be an increasingly compelling investment opportunity within the residential real estate market. The age-restricted segment, also referred to as ‘55+,’ is positioned between traditional multifamily apartments and senior housing on the housing spectrum, targeting the healthiest and youngest of the senior population.
Typically, age-restricted properties are lower rise and located outside of major cities, many in the Sunbelt. In recent years, this segment has emerged as a strong-performing sector and is attracting greater institutional-investor interest. The strong demographic tailwind of the baby boomer generation, now aged 58 to 76, is likely to provide robust demand well into the 2030s for various types of age-restricted rental apartments.