There are signs of stronger demand for senior rental housing, reports U.S. News, evidenced by increased rental rates at high-end senior housing complexes during the last quarter. Additionally, the value of housing complexes is going up, and may point to upcoming rental unit additions.
The housing bust slowed what had been a nationally expanding senior housing market, as many seniors were unable to sell their homes and often couldn’t afford community entrance fees without sale proceeds.
This in turn affected communities which were often forced to lower rents to become more attractive to seniors, and sometimes even went bankrupt, U.S. News says. However, the National Investment Center for the Seniors Housing and Care Industry (NIC) recently reported a 1.4% rise in rental rates for the second quarter, representing the industry’s best year-over-year showing in five years.
Occupancy rates were at 88%, says NIC data, but inventory rates dipped slightly and there isn’t much new construction on the horizon.
The U.S. News article also mentions data regarding senior housing sales and transactions, with Ventas and HCP acquiring billions of dollars worth of senior housing assets.
Read the article here.
Written by Alyssa Gerace