The end of June marks the seventh full year of this unprecedented bull market for seniors housing and care acquisitions.
We have hit yet another milestone, as the end of June will represent the seventh consecutive year of a bull market for seniors housing and care acquisitions. Not all bulls, however, are created equal, as six months into 2017 it still does not seem as strong as 2015 and parts of 2016. There is certainly more caution in the air, and many people have been waiting for the correction in pricing that just never seems to come. Is the demographic tsunami so strong that a major correction will never happen? Unlikely. Many of us thought rising interest rates would put a damper on the market, but so far the impact has been minimal, even with last week’s 1/4 point rise. These increases have impacted the short end of the market, of course, but have had next to zero effect on the intermediate-term market, where most buyers finance, or the long end with HUD. But seven years is remarkable, and unprecedented, with even pockets of overbuilding, labor shortages, reimbursement challenges, and rising costs not taking their toll. Yet.
