Investor Survey and Trends Report: U.S. Senior Living & Care

As we look ahead, the senior housing sector faces economic and geographic uncertainties, but there are opportunities. Investors are cautiously optimistic, and consumer demands are expected to grow. Exciting trends include technological trends, infrastructure and design innovations, and unprecedented dining, wellness, and other amenities in senior housing. In the Investor Survey and Trends Report: U.S. Senior Living & Care, Cushman & Wakefield used insights from more than 90 industry leaders to discuss trends, opportunities, and changes.

Zach Bowyer, MAI, MRICS, senior managing director, valuation & advisory/living sectors at C&W

Zach Bowyer, MAI, MRICS, senior managing director, valuation & advisory/living sectors at C&W, told Pi, “Our same-store valuation data does suggest year-over-year improvement in operating margins, which is a combination of improved occupancy, rent growth, and improving labor market. However, continued innovations in technology, healthcare provider partnerships and building envelope will be required in order to regain pre-COVID operating margins.”

Among the key takeaways:

• 68% of survey respondents anticipate a continued increase in capitalization rates over the next 12 months.

• 51% identify debt market liquidity as a top concern.

• Nearly half of respondents (49%) are targeting core-plus investment strategies, and 34% say they’re focused on opportunistic or distressed investment strategies.

• A majority of respondents say they are gravitating back to more need-driven segments, and 33% are focusing on assisted living.

• Environmental, social, and governance (ESG) considerations continue to gain attention, and 59% of survey respondents say that ESG initiatives are positive. However, only 9% suggest they’re willing to provide a premium to pricing where ESG is prevalent.

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