Independent living and assisted living are the segments of senior housing and care that are most appealing to investors right now, according to the results of a new survey by CBRE.
The two segments were tied, with 28% of survey respondents expressing an interest in them, in the “Summer 2019 U.S. Seniors Housing & Care Investor Survey.” The answers represented an increase in interest for assisted living (compared with 23% in 2018) but a decline in interest for independent living (compared with 34% in 2018).
“Interest in the active-adult segment continued to rise and could eventually disrupt traditional seniors housing,” however, the authors noted. Interest in active adult communities increased 3%, to 22%, in 2019 compared with 2018, according to the survey.
Continuing care retirement communities saw a slight increase in interest, from 3% in 2018 to 6% in 2019. Interest in skilled nursing, however, declined from 17% in 2018 to 12% in 2019.
Memory care properties remained the least attractive to investors, with 4% of respondents in both 2018 and 2019 expressing an interest in them.
Overall, investor interest in seniors housing remain strong, with 62% of respondents indicating that they expect to increase the size of their portfolios over the next 12 months.
Survey respondents totaled 107 and included brokers, institutional investors, real estate investment trusts, developers, private capital investors and others who specialize in seniors housing and care.
The report is available for download here.