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Illinois projects 40% growth in seniors, pressuring senior housing finance
Illinois expects its 65-and-over population to reach nearly 3 million by 2035, while projections point to a sharp rise in adults 75-plus over the next decade.
Illinois is planning for a major demographic shift that is expected to expand demand for senior housing, with Bisnow reporting on the financing challenges developers and investors face as more older adults move into the market.
According to the Illinois Department on Aging, the state expects its over-65 population to grow 40% by 2035, reaching nearly 3 million people, or about one-fifth of residents. The multi-sector initiative discussed at Bisnow’s Chicago Senior Housing Conference is aimed at expanding affordable and accessible housing for older adults and caregivers over a 10-year blueprint, according to Illinois officials.
Bisnow notes that development financing remains difficult even as acquisition capital is becoming easier to access. Illinois officials and industry leaders cited longer life expectancy as the driver, while referencing Census Bureau projections that the number of adults 75 or older is expected to increase by more than 4 million by 2030.
Industry participants also warned that while senior housing can look attractive to equity investors, strong project fundamentals still matter. Bisnow reports that risks include overbuilding, and that capital flowing into the sector without guardrails can hurt performance, with senior housing viability varying more by project than multifamily development across markets, panelists said.