The seniors housing sector will remain strong, predict two members of investment banking firm Lancaster Pollard’s mergers and acquisitions team in the company’s latest newsletter.

Demographics favor the sector, Kevin Laidlaw, vice president, said in the June-July edition of The Capital Issue. “I expect the near-term market to remain stable, as all the new capital that has entered the market will need to be invested,” he said.

Despite some capital providers slowing their investment, real estate investment trusts divesting themselves of properties, an increasing desire by seniors to live at home as long as possible, the fact that current supply in independent and assisted living exceeds demand, and general economic and fiscal conditions, Laidlaw said, “I am confident the strength of the long-term tailwinds will ensure the seniors housing sector remains robust.”

Daniel Klodor, a Lancaster Pollard associate, agreed. “Although there may be some choppiness in the near term, the positive long-term metrics of the seniors housing sector are undeniable.”

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