Lu:
Absolutely. No, it’s daunting. Over the next seven to 10 years when we do the population forecast, you will see a clear divide for people ages above 65 versus the younger population. We discussed earlier in the show 25 to 44, we’ll start seeing the population decline, not just moderation but decline for that age cohort. People ages between 25 to 44 will no longer see the population gain as we saw over the past decade and a half. But on the other hand, the senior population will be on the steady growth as people aging American as a society has been aging. That is putting a tremendous amount of opportunity for the senior leaving right now, the senior leaving. If you look at the average price, especially for the facilities which has higher requirement for the medical facility and the onsite nursing and all those labor and material requirement has been unaffordable.
I’m literally envisioning if I get to that age, I probably wouldn’t be able to afford that level of leaving standard. A lot of that average rent has been growing to over $10,000 per month and that is super daunting given how much retirement saving we will be holding at that moment. So that is pretty much a function of this aging population, which has tremendous demand for the senior leaving, but also this very slow inventory growth since COVID pandemic. So this is very peculiar to the senior living sector. The reason being if we just really took the time machine and travel back at the beginning of the pandemic, senior leaving facility was hit the hardest.
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