2023 Seniors Housing & Care Investor Survey and Trends Outlook
Occupancy recovery fueled by healthy demand and delayed inventory growth for Seniors Housing
- Brian L. Chandler, MAI, CRE, FRICS
- Bryan J. Lockard, MRICS
- Jacob Sandler
- Amber Schiada
- Maddie Holmes
- Kari Beets
Our investor survey indicated that 44% of respondents might increase exposure to seniors housing in the next twelve months and an additional 44% would not change their current exposure, indicating optimism or at least believe in the stability of the sector. Capital markets and interest rates are a major concern over the next 12 months (as indicated by 60% of respondents), and while this uncertainty will lower sales volumes in the short-term the expected revenue growth of the seniors housing sector and anticipated 44% growth of the 75+ population in the next 10 years bodes well for its long-term stability.
Report highlights:
Capital Markets
Pricing uncertainties have limited capital markets activity in the second half of 2022 and will continue at least until H1 2023
Capitalization rates are increasing as the cost of debt rises
Interest in seniors housing still remains strong as investors seek higher yields from alternative asset classes
Market fundamentals are recovering with rising occupancy and still limited construction
