Are Even Contrarians Optimistic?
Senior living construction and renovation have been bumpy in recent years. While there are still some potholes and detours, the ride is smoothing out a bit. In a recent NIC webinar, Meet Senior’s Housing’s Contrarians, some experts in the field shared their thoughts. While they offered some cautionary tales and precautions for the future, they also saw some light at the end of the tunnel. Here are just a few insights:
Many in the industry have been hunkering down as valuations have been challenged, exit plans have been destroyed, carrying costs of non-cash-flow properties have spiked in 2023 and progressed into 2024, and the hope of a quick drop in interest rates has slowly dissipated. At the same time, some regional banks have increased regulatory requirements and higher interest rate expenses have made obtaining debt more difficult; as a result, we’ve been re-exposed to old terms such as seller financing.