55% expect no change in value of seniors housing this year

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55% expect no change in value of seniors housing this year
55% expect no change in value of seniors housing this year

Almost 55% (54.8%) of respondents to a survey by professional services firm JLL said they believe that no change will occur in the value of seniors housing over the next year. Seniors housing was defined as independent living, assisted living and memory care.

The company detailed survey results in “Seniors Housing Survey and Trends Report, Winter 2018.” More than 250 investors, operators, developers and lenders in seniors housing and healthcare were invited to participate.

Twenty-nine percent of poll-takers said they expect a modest increase in the value of seniors housing, 12.9% expect a modest decrease and 3.2% expect a significant increase.

Survey respondents forecast the highest percentage in revenue growth and the lowest percentage in expense growth in independent living of the three property types.

They said they anticipate average revenue growth of 3% in memory care, 3.5% in assisted living and 3.7% in independent living over the next 12 months. Regarding expenses, poll participants said they expect them to grow 3.4% in independent living and 3.6% in both assisted living and memory care over the next 12 months.

Independent living properties also are the fastest to sell, they said.

The average number of months for a property from being placed on the market until closing was 6.6 months for independent living and 6.8 months for assisted living, and it was 7.1 months for skilled nursing.

Overbuilding and market saturation were defined as high-risk concerns by 44% of respondents, but higher percentages of participants chose attracting and retaining qualified staff (56%) and increasing labor costs (53%) as high-risk concerns.

See the entire report here.

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