U.S. Seniors Housing & Care Investor Survey Update | Winter 2018
Seniors housing demand should remain at relatively healthy levels in 2018, given expected steady economic growth and an improving housing market. However, new supply will put short-term pressure on occupancy and/or rent growth in select markets.
For investors, the top concern is property-level operating costs, according to the CBRE survey. The second highest concern is construction activity (supply vs. demand fundamentals), but the percentage declined from the previous survey.
Controlling property level operating expenses will be essential to maintain valuations in 2018.
Most survey respondents (63%) expect cap rates to remain firm over the next 12 months.
Investor interest is gravitating to the more lifestyle focused segments of seniors housing. Independent living was identified as the best investment opportunity (36% of responses), followed by assisted living.