Assisted living emerged from the Great Recession largely unscathed. Will history repeat itself 10 years later?
Well, I just found out on Monday we are officially in a recession. Not that anyone needed to get the official notice, since we all know what 40 million recently unemployed means for the economy.
But what does it mean for assisted living? In the “Great Recession” assisted living came out looking pretty good because of its need-driven characteristics. In the ensuing 10 years, average per-unit prices soared to record levels even as over-development caused some census issues.
So, is this recession, or potential depression, going to be different? The elderly will continue to need care, pandemic or not, so why should this time around be any different from 10 years ago? In addition, interest rates are much lower now than they were 10 years ago, and we are getting closer to that demographic bubble called the baby boomers. So, what could go wrong? We will see, but it is different.
Join me next Thursday as two operators and one investor will delve into these issues on our webinar, as lenders, operators and investors all try to figure out what is going to happen to assisted living values and consumer demand. There’s no easy answer, which is why you will want to attend.
