According to the just-published 2015 Senior Care Acquisition Report, valuations of assisted living and independent living communities are reaching unprecedented heights. In seniors housing, we saw a deal in 2015 valued over $500,000 per unit, two deals with prices over $400,000 per unit and a whopping 15 sold over $300,000 per unit.
As valuations continue to rise due to the availability of capital, increasing investment demand and sellers with higher quality properties being attracted to sell in this hot market, more and more may look to construction to get into or grow in the seniors housing market. Of course, new development comes with its risks, but as prices continue to rise, buyers may soon become builders.
