Pricing for skilled nursing units has remained relatively steady despite the fact that many beds are empty as a result of the COVID-19 pandemic.
Investors paid an average of $81,127 per unit in the 12 months through the fourth quarter of last year, compared with $80,450 per unit the year before, according to preliminary data from the National Investment Center for Seniors Housing & Care’s NIC MAP Data Service and Real Capital Analytics.
Much of what’s helping keep skilled nursing properties afloat has been extra pandemic-related government funding, but some nursing homes also are caring for residents with more acute medical needs who otherwise would have stayed in hospitals. Investors also continue to believe that the need for nursing home care will grow after the pandemic is gone, experts believe.
“The alternatives to skilled nursing are extremely limited,” James Graber, CBRE’s seniors housing and healthcare practice leader, told WealthManagement.com. “The long-term need is there.”
This article appeared in the McKnight’s Business Daily, a joint effort of McKnight’s Senior Living and McKnight’s Long-Term Care News.
