Business
The senior living market can’t keep up with demand as boomers age
A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
Senior living has long been a somewhat under-the-radar real estate play, with a somewhat unappealing reputation. But it’s on the edge of a boom — a baby boom, to be exact.
More than 4 million boomers will hit 80 in the next five years, and occupancy at both active adult and assisted living communities is already rising fast. This comes as annual inventory growth in senior housing just dropped below 1%, the first time that’s happened since the National Investment Center for Seniors Housing and Care began tracking the metric in 2006.
Ventas, a senior living real estate investment trust with a $31 billion market cap, is betting big on what CEO Deb Cafaro calls the longevity economy.
“We’re buying billions of dollars a year in senior living, and we’re seeing returns in the sevens going in, with low to mid-teens, unlevered IRRs [internal rates of return], so there’s significant growth in assets, and we’re buying below replacement costs,” said Cafaro, who has been at the helm of the company for over 25 years. “I’ve never seen that combination of investment characteristics in my long career in real estate, and so we’re fully taking advantage of all of that.”
Cafaro said growth in the senior living demand pool is expected to be 28% over the next five years. She called the demand tailwinds “incredibly strong and durable.”
“Think about 2000 in the real estate investment trust business — office was over 20% of the overall REIT pie, and health care was 2%. Now when you look at the pie, office is 5%, and what is it now? It’s health care, senior living. It’s data centers. It’s cell towers. Why? Because that’s where the demand is,” she said.
Cafaro said Ventas, which purchases properties but doesn’t develop them, benefits from the deep lack of supply in the senior living sector, from active adult to assisted living to memory care facilities.
The Sunrise of Lincoln Park senior living community, owned by Ventas, in Chicago, Illinois.
Courtesy of Ventas
“As an owner with one of the largest footprints of senior housing, of existing stock in the U.S., we’re benefited by the higher cost of development, because we have an installed base and we’re acquiring assets actually at below replacement cost, and, right now, that’s part of our strategy,” Cafaro said. “We feel really good about our base of 850 senior living communities, where occupancies are increasing. And we also feel good about the multibillions of dollars we’re investing every year in existing assets.”
Why no supply?
Aegis Living is a developer and operator of senior living facilities in Washington, California and Nevada. The massive supply-demand imbalance weighs heavily on its founder and CEO, Dwayne Clark.
“There’s a problem brewing, and the only metaphor I can think of, it’s like putting a party balloon on the end of a fire hose and watching it increase with great velocity. Velocity without being able to do anything until it pops,” Clark said.
According to NIC data, there will be just about 4,000 new senior living units developed this year and next year, but demand growth would necessitate 100,000 new beds each year through 2040.
“It’s the lowest amount of units we’ve seen since 2009, the lowest. And, again, I’ve done this for 40 years. I’ve never seen such a lack of construction starts,” Clark said.
Average rents at Aegis are around $12,000 a month, but that includes utilities, transportation, food, activities and differing levels of care. Clark said most residents are covering costs in part by using the proceeds from the sale of their homes, which have appreciated dramatically in the past five years.
Higher interest rates, he said, are the primary roadblock to new development.
“We have six buildings waiting to get refinanced. We never, in our 28-year history, have had more than two. We’ve got six, and soon to be seven, and it’s all on floating debt. So that is a catastrophic problem for the industry. And again, we’re not catching up with the demand,” he said.
Investor interest
Harrison Street is an alternative real estate investment management firm with $55 billion in assets under management. Its U.S. Core Senior Housing strategy posted a more than 30% increase in same-location net operating income last year, according to a company spokesperson. Harris Street has maintained that with new supply constrained and demand durable, this could be the strongest entry point for alternative real estate investment in its 20-year history.
“Frankly, over the course of the past 20 years, I can’t identify another period where we were more excited about the current setup within the sector,” said Mike Gordon, global CIO of Harrison Street, which invests in the independent and assisted living segments, as well as memory care.
Gordon said severe uncertainty in the first years of the pandemic — when there were horror stories of infections and fatalities in senior living facilities — has largely been resolved. He said now more seniors are living in these communities than there were pre-Covid.
Harrison Street acquired about 20 senior communities during 2020-2021, at the start of the pandemic, when there was virtually no liquidity in the sector. Over the past few years, growing demand and tight supply have resulted in annual average rent increase of nearly 5% across the sector and high single digits in certain markets, according to Harrison Street.
Despite high interest rates overall, Gordon said private investors have new interest in the sector, thanks to that strong rent growth.
“What we’re seeing right now is a real quick return of liquidity into the sector,” Gordon said.
Business
Top stocks to buy today: Stock recommendations for April 17, 2026 – check list – The Times of India
Stock market recommendations: Reliance Industries, and Varun Beverages are the top stock recommendations by Bajaj Broking Research for April 17, 2026.Reliance IndustriesBuy in the range of ₹ 1330.00-1350.00
Reliance Industries stock has undergone a corrective phase over the past three months and is currently consolidating near a crucial support zone of ₹1270–₹1300. This technical setup offers a favorable risk-reward profile, positioning the stock for a potential bullish reversal and the next leg of uptrend.This ₹1270–₹1300 range serves as a crucial support area, reinforced by the convergence of multiple technical factors: (a) 61.8% retracement of the previous April 2025-January 2026 up move (1115-1611) (b) 200 weeks EMA placed around 1292, which has historically acted as strong demand area for the stockThe ongoing corrective phase appears to be nearing exhaustion, with price action indicating the potential for a fresh bullish reversal. We anticipate the stock to resume its uptrend and head towards ₹ 1474 levels in the coming quarters being the high of February 2026 and the 61.8% retracement of the recent decline of the last 3 months ₹ 1611-1290.Varun BeveragesBuy in the range of 455-465
The share price of Varun Beverages has generated a breakout above the falling channel containing last 3 months decline signaling strength and offers fresh entry opportunity.The stock has also formed a higher high and higher low signaling resumption of up move after recent corrective decline.We expect the stock to head higher towards 503 levels in the coming weeks being the 80% retracement of the previous decline from 534 to 381.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Finance ministers and top bankers raise serious concerns about Mythos AI model
Experts say Mythos potentially has an unprecedented ability to identify and exploit cybersecurity weaknesses.
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Anthropic’s new AI model exposes fresh risks, flaws for cybersecurity, IT services – The Times of India
New Delhi: A powerful new AI model is forcing govts, banks, and technology firms to rethink the rules of cybersecurity – and in India, the stakes may be even higher.Claude Mythos, developed by Anthropic, has demonstrated the ability to autonomously detect and exploit software vulnerabilities, including flaws that have persisted for decades. Early tests revealed that the model could identify long-standing weaknesses and simulate complex, multi-step cyberattacks, prompting the company to restrict its wider release. Anthropic CEO Dario Amodei highlighted the shift, noting that AI systems are now capable of finding vulnerabilities “that humans have missed”, a signal of how quickly the cybersecurity landscape is changing.US Treasury Secretary Scott Bessent reportedly convened a meeting with top bank executives – including leaders from JPMorgan Chase, Goldman Sachs, Citigroup, BoA, and Morgan Stanley – to assess the risks posed by such advanced AI systems.That concern is not theoretical. According to Jaydeep Singh, GM for India at Kaspersky, the emergence of such systems represents a turning point not just for security professionals, but for everyday users. “We have been closely monitoring how AI is reshaping the threat landscape, and Claude Mythos represents a moment that every user, not just the cybersecurity industry, needs to understand,” Singh said.The dual-use nature of AI is at the heart of the concern. The same capability that strengthens defences can just as easily be weaponised. “The same capability that finds a 27-year-old vulnerability in hardened infrastructure is the capability that, in the wrong hands, turns every unpatched system into an open door,” Singh added.Cybersecurity firm Check Point Software Technologies echoed the warning. Sundar Balasubramanian, MD, India and South Asia, for Check Point, says, AI is “dramatically lowering the barrier to entry for cyber attackers,” enabling even less-skilled actors to identify and exploit vulnerabilities. He added that defensive tools can be repurposed offensively, compressing the traditional gap between attackers and defenders. Jayant Saran, partner, Deloitte India, described this as a “changed reality,” where organisations must prepare for risks that were previously invisible. He called AI a “double-edged sword…that cannot be reversed,” highlighting an accelerating race between those securing systems and those attempting to break them.In India, the risks are amplified by scale. From UPI to banking and govt platforms, millions depend on digital infrastructure – much of it built on legacy systems. These systems are often slower to patch, harder to monitor, and lack continuous threat intelligence, creating what Saran called an “asymmetric risk exposure.” Singh pointed out that this gap is especially critical in India, where legacy infrastructure serves hundreds of millions.Beyond cybersecurity, ripple effects could reach financial markets. Analysts say models like Mythos could automate parts of software development, testing, and security – core functions of IT services industry. While disruption may be gradual, labour-intensive outsourcing models could face pressure, while firms embracing AI may benefit.
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