Much of the current growth in the United States is in the continuing-care segment of the market. Both operators and residents of these facilities are organized into associations that discuss ways to improve technology and the quality of facilities and care, as well as lobby the government on regulatory and other related issues. Overall, this is a vibrant, rapidly growing sector of the private economy that is helping to improve the quality of life for senior citizens. If I were Japanese, I would want to invest in companies engaged in providing similar housing options for older people. Sadly, there appear to be few choices.
Japan does some things quite well.
But in many ways, the quality of life for older people suffers needlessly because of the lack of a vigorous private-sector industry providing better housing options. Apparently, the government believes that the appropriate solution is for older people to live with their children. While 16 percent of Americans over 65 live with their children, about 55 percent of Japanese do. But the percentage in Japan has been falling and will fall farther. But with affluence, government pensions and public health-care insurance, these living arrangements have been diminishing.