“Build it and they will come” may be the mantra in “Field of Dreams.” But it appears to be advice senior living executives are less willing to embrace these days, if a recent annual survey is accurate.
For the third straight time, fewer bosses indicated they are likely to pursue a new construction project. This year, the total was 43%. Last year, it was 46%. The year prior, it was 53%.
The reduced enthusiasm may be in response to a years-long building spree that has dramatically increased senior living housing stock nationwide. The annual update was released this week by Lancaster Pollard.
Conversely, about half of the respondents indicated that it is extremely likely or somewhat likely that they will pursue an acquisition project during 2019. That’s a 10% year-over-year increase. Moreover, 77% of respondents indicated that it was somewhat or extremely likely that they would pursue a renovation project in the coming year.
Respondents also indicated that demand for affordable housing may be about to surge.
Among the chief challenges cited: declining occupancy and labor woes. The survey of 249 executives had a 6% margin of error, according to the Columbus, OH-based investment banking and advisory services firm.