Senior living construction and renovation projects, especially in assisted living and memory care, are on the rise, whereas efforts to buy or sell existing properties have waned, according to the findings of Columbus, OH-based Lancaster Pollard’s 2017 Seniors Housing and Care Survey, released Tuesday.
The results are based on the 273 responses Lancaster Pollard received to an online survey sent in December to leaders at seniors housing and care facilities throughout the United States.
Seventy-five percent of respondents said they are extremely likely or somewhat likely to pursue construction projects in 2017, compared with 70% who answered similarly in last year’s survey. Sixty-nine percent of respondents said they are extremely likely or somewhat likely to pursue a renovation project this year.
Affordable seniors housing and memory care are the hottest areas, according to survey participants: 62% said they believe that the affordable housing market will experience the most growth in 2017. Forty-five percent of respondents said that memory care would be the biggest growth area, followed by 42% for assisted living (participants were able to select more than one area).
Twenty-two percent of respondents said they are extremely likely or somewhat likely to try to sell a facility this year, compared with 65% of respondents who expressed interest in doing so last year. Forty-three percent of respondents said that they are extremely likely or somewhat likely to pursue an acquisition project, compared with 53% of respondents who responded similarly last year.
Seventy-two percent of survey-takers said that average occupancy over the past year had been 90% or more, and almost 24% reported occupancy of 80% to 89%. Most respondents said they expect their average occupancy to stay the same (55%) or increase by 10% or less (32%).
A greater percentage of respondents (40%) told Lancaster Pollard that they expect the new presidential administration to have a very positive or positive effect on business than a very negative or negative effect (14%).
Of the 273 respondents, 59% identified themselves as for-profit providers, and 73% identified themselves as either CEOs, chief financial officers or owners. Most respondents said their facilities had 250 or fewer beds or units. All parts of the continuum of care were represented.