What Does the Future Hold for Seniors Housing?
National Investment Center for Seniors Housing and Care and National Real Estate Investor are collaborating to create the second annual survey on the outlook for the seniors housing property market in terms of both its market fundamentals as well as its capital market trends. The survey will include the views of owners, builders, developers, lenders and investors in the seniors housing and care sector.
Last year’s survey showed a positive outlook for the sector, with the expectations that market fundamentals would continue to improve with an increase in the availability of capital for acquisitions, refinancing and new construction. These factors certainly helped fuel investor appetites for additional seniors housing properties.Below are a few of the highlights from the 2014 survey click here to view the full report.
The 2014 survey looked at extenuating factors such as the state of the U.S. housing market, U.S. economy, new competing facilities, and rental discounts/incentives and the impact on occupancy rates.
The South and West regions were viewed as the strongest regions by senior housing operators when asked to rate the strength of the market fundamentals in each region.
The majority of the respondents (79 percent) expected to see construction starts increase significantly over the 12 months following the survey, with 21 percent expecting it to remain the same.
REITs, Fannie/Freddie and HUD were considered the most significant sources of debt capital for the seniors housing sector. Nearly half of the respondents (46 percent) believe that REITs provide ample debt capital, followed by Fannie/Freddie at 36 percent and HUD at 35 percent.
If you are a owner, builder, developer, lender or investor in the seniors housing and care sector, we are interested in your opions and expectations and would appreciate your participation in this years study.