When looking at the average price per unit and average cap rates for the 12 months ending March 31, 2015, most everything stayed the same compared to the 2014 calendar year. This is contrary to the fairly consistent rise in prices and fall in cap rates over the last several years. However, two things stood out. First, the average skilled nursing cap rate fell by 20 basis points from 12.4% to 12.2%. And second, the average price per unit for assisted/independent living fell 4.5% from $208,200 to $198,800. Considering the average price paid per unit for assisted living stayed roughly the same (up $200 to $188,900 per unit), that change came largely from a drop in prices for independent living. It’s too early to say whether this trend will continue in 2015, but since the record-high prices for seniors housing acquisitions last year were driven by the independent living market, we may have already reached the peak. Stay tuned.
