Why senior housing delivers bigger rent jumps than regular apartments
“But, but and, you know, so seniors buildings, you kinda get less turnover.”
But, but and, you know, so seniors buildings, you kinda get less turnover. But when you get turnover, it's big jumps because rents have been, you know, tied to tied to rent controls. But but when that unit turns over, we can get a big jump. Other units that are turning more often, let's say, in a blue collar in a blue collar building or white collar building when, you know, people's jobs change and they move around, we're we're closer to our market value on that on those buildings.
About this clip
A real estate investor explains the counterintuitive dynamics of senior housing versus regular residential properties. While senior buildings have lower turnover rates, they offer much larger rent increases when units do become available due to rent control restrictions, compared to blue and white collar buildings that turn over more frequently but stay closer to market rates.
Why this clip
Reveals a non-obvious investment strategy about how different tenant demographics create distinct risk-reward profiles in real estate.
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