Despite the economy, inflation, increasing interest rates, staff shortages, and tight labor market conditions pressuring wage rate increases, companies operating senior housing communities are attracting growing interest from investors due to their solid demographic tailwinds and proven ability to outperform other sectors during volatile market conditions.
After a slowdown in growth followed by strong post-pandemic demand, the sector’s gradual occupancy recovery and patterns present an exciting investment opportunity.
The current trend of operators is to include wellness programs in their offerings, adding an appealing value for prospective residents seeking a high quality of life, longevity, and a sense of purpose through intellectual, physical, social, spiritual, vocational, emotional, and environmental wellness programming.
Furthermore, senior housing is also being recognized as part of the healthcare continuum – meaning that operators will eventually enjoy the revenue streams associated with a capitation, risk-sharing model of care.
This report from McKnight explains why investor optimism abounds about the future of senior living.