Investors excited about independent and assisted living: report

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CBRE report cover detail
CBRE report cover detail

Investors this year will be more attracted to “lifestyle-focused” segments of seniors housing as opposed to healthcare-focused ones, because of healthcare reform and changes to Medicare and Medicaid, according to a new report from commercial real estate services and investment firm CBRE.

Authors of the company's “2018 U.S. Real Estate Market Outlook” cited findings from its fall Seniors Housing & Care Investor Survey, in which investors said they were most excited about independent living, followed by assisted living and then 55+ active adult housing.

CBRE forecast that active adult housing will become increasingly important to the senior housing and care industry — which traditionally is thought to include independent living, assisted living, memory care and skilled nursing — because it will attract baby boomers, who will be aged 53 to 72 years in 2018. Although overall, investors ranked active adult housing in third place in the survey as far as interest, 13% said they viewed it as the segment in which they were most interested, more than twice as many as had said so in the previous survey, CBRE said.

Sixty percent of survey respondents said they expected to increase their exposure to seniors housing this year, and 6% predicted decreasing it.

Overall, CBRE forecast continued improvement for the seniors housing market this year, especially because construction will be down. Occupancy should increase, and rent growth should remain around its current rate of 2.6%, the company said. Institutional buyers and foreign investors, especially those from China, likely will be more active this year than in the recent past, the report authors added.

Read the whole report here.

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