You may start to get tired of hearing us talk about all the records being set, but we will never tire of it. As of November 11, we have passed last year’s record of total acquisitions in the seniors housing and care sector, now standing at over 720 deals, according to LevinPro LTC. And we thought last year was an amazing year!
The good news is that pricing has been relatively reasonable so far, mostly because of still-high interest rates and lenders not getting too aggressive. What we don’t know is how long this will last.
“Stupid” money that has appeared in previous rising markets has not yet reared its ugly head, but that will probably change. Everyone is looking for a growing market, and the demographics for senior living will be compelling for many years to come. That is an exciting prospect, but we will always need some level of conservatism.
What the market really needs is new developments, to show the latest in design upgrades as well as technology innovations. That will get those seniors who are interested even more excited about a move, but that may be tempered by unit rate increases to cover those higher costs. But what the elderly population really needs is more affordable senior living communities. Whoever solves that puzzle will do quite well.
