NIC INSIGHTer: Active Adult Growth

“What do you think is currently the biggest barrier to Active Adult growth, if any?”

  • “Currently the biggest challenge is the capital markets coupled with Active Adult being a newer product type. With very limited dollars (both equity and debt) available for construction right now, investors are highly selective and sometimes less likely to enter into a product type they aren’t experienced in.”

    Sarah Anderson, Senior Managing Director, Newmark Lument
  • “The biggest barrier to Active Adult growth is developer and operator’s ability to deliver a differentiated product that is easily understood and valued by our customers/residents.” 

    Ben Burke, Managing Partner, Headwaters Group
  • “I can answer your question in one word…capital!  While progress has been made with lenders and equity investors, there is still a limited number of capital providers that understand or have experience in active adult –   primarily because there isn’t much supply yet.” 

    Jeff Patterson, Co-Founder & CEO, Sparrow Partners

4Q 2023 Lending Trends in Senior Housing and Nursing Care Remain Low
4Q 2023 Lending Trends in Senior Housing and Nursing Care Remain Low

NIC Analytics released the 4Q 2023 NIC Lending Trends Report. The complimentary quarterly report includes data trends over seven years for senior housing and nursing care construction loans, mini-perm/bridge loans, and permanent loans from 3Q 2016 through 4Q 2023. The survey reflects the contributions of 17 lenders.

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