As Colby mentioned, an aging population may support demand for CCRC funding. The U.S. elderly population is expected to almost double in the next 25 years, growing by almost 80% as the population of those over the age of 65 reaches 83.7 million by 2050.

“For many, living out the rest of their days in their own homes will not be an option. The decision, then, will be choosing between the options available. A CCRC is one of those options,” Colby said.

Continuing Care Retirement Communities combine many aspects of senior living solutions in a single location, including independent residential units where healthy seniors may live on their own, assisted-living units that provide some care and nursing beds for seniors requiring constant nursing care.

“For investors, as the U.S. gets older, the size of the market for municipal bonds used to finance the construction of CCRCs looks set both to increase, as more of them are built, and to offer interesting opportunities. The graying of American baby boomers, and the consequent increasing demand for CCRCs, is likely to result in greater issuance of both tax-exempt and taxable bonds in the coming years,” Colby added.

For more information on the munis market, visit our municipal bonds category.

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