“The problem comes down to a failure of supply to keep up with demand. By 2026, more than 2.4 million Canadians aged 65 and older will need the “supportive care” offered by retirement homes, including monitoring of medication, regular housekeeping, meal preparation and other services. As more baby boomers turn 65, the number requiring such care is expected to reach “a staggering” 3.3 million by 2046….”
—Noami Powell, regarding a DBRS study reporting for Thefinancialpost.com: A looming housing affordability crisis is poised to hit seniors across Canada, May 14, 2018.
Investing with Levante
The Levante Living Trust is a fund that provides a vehicle for investors to potentially capitalize on favorable demographic trends such as an aging population, increasing life expectancies, and the growing need for specialized care and stable sources of revenue in the Senior Living Industry in Canada. The intended result is consistent, long term wealth creation as well as enhancing the lives of seniors in Canada.
The Levante management team has over 20 years experience in the senior living healthcare sector, including the development, operations and redevelopment of long-term care facilities and adult based residential communities and over 30 years of experience in financial services.
Why Invest in Senior Living Now?
The Demand for Senior Housing: The Growing Senior Population & Declining Vacancy Rate
-
- Levante Management anticipates sustained growth in senior living due to growing aging population. According to preliminary estimates by Statistics Canada, 17.2% of Canada’s population were aged 65 and older on July 1 2018 compared to only 14.4% on July 1, 2011. (Canada’s population estimates: Age and sex, July 1, 2018″ Statistics Canada. Accessed February 2020 https://www150.statcan.gc.ca/n1/daily-quotidien/190125/dq190125a-eng.htm)
-
- The vacancy rate for standard spaces remained relatively unchanged dropping to 10.3% in 2019 from 10.4% the previous year. (https://assets.cmhc-schl.gc.ca/sf/project/cmhc/ pubsandreports/seniors-housing-report/2019/seniors-housing-report-ontario-65981-2019-a01-en.pdf?rev=ac2031f1-9839-4ad6-ac35-93159f1d2767)
The Rise of the Boomer Population
Over the next 20 years, the 75-plus segment is expected to grow by almost 4.0% per year and will account for 13.5% of the total population by 2040. In order to maintain the current level of seniors housing inventory per capita, total supply will need to more than double over the next 20 years to maintain equilibrium. (Senior Housing Industry Overview Canada. 2020. Cushman and Wakefield)
