A popular statistic thrown around over the last decade noted that 10,000 Americans turned 65 every single day. From 2025 to 2027, however, that number is projected to peak at 11,200 new seniors every day. The “silver tsunami” is building, and it will leave plenty of change in its wake as it crests and crashes.
So how can we as real estate investors look ahead and invest accordingly—even if we can only invest small amounts at a time?
1. Assisted Living Facilities
Plenty of seniors will need assisted living care. And there aren’t enough facilities currently catering to them.
Matthews.com reports that occupancy at assisted living facilities has increased by roughly 2% a year for each of the last four years. In secondary markets, that’s put occupancy rates at 90%, with many primary markets higher still.
In the co-investing club that I invest through, we just vetted and went in on an assisted living facility deal. It’s with a mom-and-pop operator in Sonoma County serving higher-end clients, and our investment was in an expansion to their third campus in the area. They plan to refinance in Year 2 to return our investment capital, but we’ll continue collecting distributions for the full hold period.
Unlike a typical passive real estate investment, this is a hybrid that includes both the property and the business. The numbers on these deals are just staggering: 34% projected annualized returns (largely because of the early return of capital) and 13% distribution yields starting after the first year.
And no, you don’t need the typical $50,000 to $100,000 required to invest in these. In our club, members can invest with $2,500 or more and get the full cash flow, appreciation, and tax benefits. We collectively invest $400,000 to $800,000 (so we meet the $100K minimum), but because so many of us go in these together, each member can invest small amounts.
2. Active Adult Communities
A more traditional real estate investment, these communities generally serve healthy adults over 55. They enjoy some huge benefits, however.
First, the demographic shift covered above: America is aging fast, and many older adults want to live in communities catering specifically to their needs and population.
Second, these properties are “stickier” than other multifamily properties. Once older adults move in, they rarely move out again.
They also tend to be recession-resilient. Most seniors have largely de-risked their portfolios, living on a combination of pensions, bond interest, and annuities, with a relatively small allocation in stocks.
Finally, these communities charge premium rents because they cater to a niche clientele.
While our co-investing club hasn’t invested in one of these yet, they’re on our radar.
3. Age-in-Place Rentals
Many seniors prefer to move into a single-family “forever home” with one-story living and a few safety and convenience modifications. But not all of them buy.
“Investors can earn a high cash-on-cash return on dated ranch homes built decades ago in established neighborhoods,” explains full-time investor Austin Glanzer of 717 Home Buyers. “Many already have the basic layout older buyers want, and a few strategic renovations like adding handrails, removing tubs, improving lighting, and creating easier entrances can make them stand out to seniors.”
And just think about the average tenancy you’ll enjoy as a landlord for “forever homes.”
4. Modular and Manufactured Home Installations
Of course, many forever home seekers do want to buy. There’s plenty of money to be made in serving them.
I should know. Our co-investing club partnered with a land investor whose strategy includes buying land parcels and installing single-story manufactured homes on them. He sells them through Realtors to first-time homebuyers and downsizing seniors.
Get this: In the region where he operates, these homes sell for literally half (around $230,000) the average local home price ($460,000). No matter the economy, there will always be demand for half-price homes, making it a recession-resilient investment.
The projected annualized return on that partnership is 18%.
5. Multigeneration-Friendly Homes
Over the last decade, we’ve seen increasing demand across the country for homes with multiple living spaces for aging parents and in-laws.
“That includes duplexes, homes with in-law suites and ADUs, and other homes with two legitimate living areas,” notes Realtor and title expert Lesley Hurst with Penn Charter Abstract. “Families are increasingly looking for alternatives to traditional senior living, and versatility is becoming a very valuable feature.”
Whether you buy rentals, flip houses, or invest passively through private partnerships, there’s plenty of opportunity here to capitalize on the silver tsunami.
6. Short-Term Rentals Catering to Retirees
Plenty of tourism destinations specifically target retirees. Consider buying a short-term rental property in a retiree-friendly destination and updating, decorating, and marketing it to older visitors.
Bear in mind that, according to SmartAsset, adults over 55 own 73% of the wealth in this country, with most concentrated among the baby boomers. In other words, the average senior has far more money and time to spend on travel than the average American.
7. Tax-Abated Affordable Housing
Of course, not every baby boomer is a multimillionaire. Many live on a fixed income with a pinched budget. In fact, 44% of seniors live on Social Security alone, with many living on less than $2,000 a month.
They rarely move, they don’t make much noise, and they usually don’t deal drugs. And with their guaranteed income from Social Security, they prioritize paying their rent on time so they don’t end up under a bridge in their golden years.
As an alternative route from the more posh active adult communities, consider investing at the opposite end of the spectrum in income-restricted affordable housing.
It works like this: A real estate operator partners with a nonprofit to set aside some or all of the units for affordable housing, restricted to residents earning under a certain percentage of the area median income. In exchange, they get a partial or even full property tax abatement.
That creates an instant leap in net operating income—even after accounting for any discount on the rent. Beyond the better cash flow, these units have higher demand and usually a waiting list because of the below-market rents.
We’ve invested in several of these in my co-investing club, and they’ve all performed well. Even in recessions, demand and occupancy stay high at these units.
Again, you don’t have to buy any of these properties directly. Invest $2,500 to $5,000 at a time if you invest passively through a co-investing club. I do this every month as a form of dollar-cost averaging my real estate investments.
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