While residential and commercial construction remains in the doldrums, the senior housing market remains unaffected. Sunrise Senior Living (NYSE: SRZ) is enjoying an expanding market, opening seven new communities in 4Q 2007 alone. Sixteen more new senior living communities are in the works for 2008, to join the 22 new communities Sunrise opened in 2007. 4Q revenue under management increased 7% to $616.7 million and FY2007 revenue under management increased 8% to $2.37 million. Revenue growth was a result of a combination of acquisitions of existing senior communities, building new communities, as well as a 5.8-7.9% increase in the average daily rate in existing communities.

Presently, Sunrise Senior Living is enjoying a trifecta. The number of revenue producing senior communities is on the increase. The company usually hits its 95% occupancy rate within the first 12 months if not sooner, and the average daily rates paid by an increasing number of those residents is also going up. More people paying more money. For an investor, what's not to like?

Due to accounting restatements for its Greystone subsidiary, Sunrise Senior Living is currently in the midst of a $140 million reduction in net income for the period 1996-2005. By the end of 2008, the company predicts the accounting restatements will no longer be a drag on the balance sheet, which will then allow it to expand its senior living offerings in the U.S., the U.K. and Germany. Currently the stock trades at under $25. There will be no shortage of seniors in the next few years looking for attractive housing options, so now might be a good time to investigate investments in the senior housing market.