July 27, 2015 - These days, change is a constant in the Seniors Housing business fueled by tremendous demographic shifts and new ideas about "aging in place." The number of seniors (those over the age of 65) in the United States continues to rise steadily. According to Newmark Grubb Knight Frank's Global Healthcare Outlook 2015, the US Census Bureau reports that there were 40 million seniors in 2010, which is expected to more than double by 2050, bringing the senior population to more than 20% of the total US population.
Our borrowers are constantly upgrading building designs and amenities to not only address basic supportive needs but also to address the desire for a comfortable lifestyle that contributes to quality aging. Older adults are seeking better services to support living, as well as to support a certain lifestyle.
For more than 20 years, Fannie Mae has supported this evolving market by providing low-cost and flexible financing products to this industry through our 17 approved Seniors Housing Lenders. Since early March, I have had the pleasure of managing Fannie Mae's Multifamily Seniors Housing Team, which is now being led by Chris Honn and includes Roosevelt Davis and Nancy Griffin. This specialized team has a combined 50+ years of experience in the Seniors Housing sector and is focused on enhancing our borrower relationships.
Our Q1 2015, Seniors Housing production volume was $369 million, the highest first quarter production we've seen in four years and an increase of over 130% from Q1 2014. Our Seniors Housing Credit Facilities executions are a competitive advantage that offer flexibility, financial predictability and a customized approach. These facilities contributed a great deal to our production growth year to date. We are bullish on the overall growth of our Seniors Housing business as even with large volumes of new properties entering the market, seniors housing occupancies have remained healthy with over 90% of units occupied with rental growth of +2.44% in Q1 2015, the highest growth rate since Q2 2009.
Over the long term, given the strength of the sector in a period of active development, we believe that rental growth can continue and new supply can be profitably added to the market. That's why the Fannie Mae Seniors Housing team continues to be ready, willing and able to work with you to provide financing solutions that you need in this market.
Vice President, Multifamily Customer Engagement