We have spent the last few weeks discussing the skilled nursing market, focusing particularly on the average cap rate falling to near-record lows. But what about the assisted living M&A market? We saw the average price per unit for assisted living communities rise slightly (from $188,700 in 2014 to $189,200 in 2015), and in turn the average cap rate fell by five basis points from 7.75% to 7.7%. Despite the slight decrease, this is still a continuation of the “new normal” AL market. Since the Great Recession, the average cap rate has steadily been declining, and seemed to rest at around 8.7% in 2012 and 2013. But since then, the current market has settled to an average cap rate around 7.7%, coinciding with the historic increases in assisted living prices.