According to a survey by the National Real Estate Investor (NREI)/National investment for Seniors Housing & Care (NIC) Seniors Housing Market, the remainder of 2017 is expected to be busy for senior housing brokers. The survey indicated that nearly half of the investors polled plan to invest in senior housing properties within the next 12 months. This is an increase of 9% from respondents who were polled on the same question this time last year. In addition, 11% of senior housing property owners plan to sell in the next year, while 42% say they will be holding on to their facilities.
One of the driving factors behind the responses from pollsters is the fact that many believe senior housing prices will drop. Throughout the last year, senior housing investments have remained steady and even dropped 1.5% in the second quarter of the year. However, it is important to note that is still a 6% increase from where prices were at this time in 2016. Nonetheless, senior housing dealmakers are preparing for an influx of investors as more properties become available.
One of the main questions senior housing developers are asking regarding this change is, “why now?” For one, approximately 95% of all senior housing deals that closed in the second quarter of 2017 were for $50 million or less, which is a substantial number. In fact, there hasn’t been that margin of deals closed in that price range since 2010. This means that senior housing prices remain competitive as we continue to see more and more properties hit the market. This is presenting a unique opportunity for investors – one that we are going to keep our eye on. While prices remain steady and we are seeing interest among dealmakers and investors alike, it is important to pay attention to the trends. We are seeing bids from different sources than we have in the past – namely private equity and smaller private buyers.
So while public real estate investment trusts (REITs) may not be in the spotlight when it comes to senior housing investment, there is plenty of interest. If demand remains strong (as we predict it will) and investors have the capital, you can expect to see more senior housing facilities trade hands. To learn more about the current state of the senior living industry or if you are interested in investing in a senior housing property, please contact Shep Roylance of The JCH Group.
It’s no secret that the senior housing industry is in a major transition period right now. From the changing demographics to the fact that technology is making its way into all aspects of our lives, it is no wonder the senior living industry has had to adjust. As we’ve discussed over the last several months, there are numerous ways the industry is adjusting to this new generation of residents – namely when it comes to the type of care being administered. With this, it is also important to point out that various trends in senior housing are on the rise, thanks in large part to new expectations from residents.
Thanks to resident expectations and changing needs, one of the number one trends we are seeing right now is open floor plans and walkable communities. Gone are the days of residents looking for isolated, rural communities – today’s seniors have different priorities. Walkability has become a hot topic amongst senior housing providers and developers in recent months. According to a recent survey, a vast majority of seniors are more interested in assisted or independent living communities that offer proximity to transportation in urban neighborhoods. As our health needs and expectations have changed over the years, so have people’s housing needs and desires. Baby Boomers are not ‘throwing in the towel’ so to speak when it comes to their senior housing decision. They are taking their time and due diligence to find a place that meets their needs – both in wellness and social.
In the survey mentioned above, approximately 11% of seniors said neighborhood was a top priority when it came to selecting a senior living community. While this may not be a large percentage, the number of residents who find neighborhood and location important is on the rise. The growing appeal of urban-based senior living communities is something providers and developers alike are taking note of. Walkability has become a top priority, and communities must adjust if they are going to attract residents moving forward.
Between the impact technology is having on the senior living community and changing resident needs as mentioned above, senior living providers certainly have their work cut out for them. To learn more about the current state of the senior housing industry or if you are interested in investing in a property, please do not hesitate to contact Shep Roylance of The JCH Group.
Investing is a great way to grow your savings, prepare for retirement, or even earn additional income in order to invest further. If you’re looking at investing in real estate you may be considering residential real estate or land, however, have you considered all of your other options as well?
Here are some property alternatives to apartment complexes or rental homes that can bring a great return on investment.
• Industrial. Industrial property is great for first-time investors because it takes less management than other types of properties and typically needs a smaller average investment.
• Retail. Retail property located in enclosed malls or in pedestrian zones can be a great investment as a lot of companies will want to be there in order to get the most exposure possible.
• Office. Well-placed office space is something that every company covets. Owning prime office property can bring a great return and long-term renters.
• Retirement/Senior Care. With our dear parents and loved ones getting older, the need for good retirement communities and senior care centers grows. Not only will an investment in retirement/senior care property bring a great return, but it will ensure that our loved ones can be well taken care of.
If you’re ready to invest in a nursing facility, care home, or retirement building or assisted living facility, Shep Roylance of The JCH Group can support you with your needs. Browse featured listings and contact Shep Roylance today to get started.
When seniors and their family members begin to look into assisted living facilities, one of their main concerns will be the independence of the residents. Just because they are moving into assisted living doesn’t mean that seniors want to give up their freedom. Having reliable transportation options is a great way to help seniors maintain the lifestyle that they enjoyed before they moved into assisted living.
Some seniors will want to continue driving their own cars, which can be a great option, but for those residents who can no longer drive or simply don’t want to, there are a few transportation options that a facility can offer. Scheduled group outings are fairly typical, using shuttles or small busses. But residents will also appreciate it if they can request individual transportation to run errands, go shopping, or visit their doctor’s office.
When you’re looking into senior housing with the JCH Senior Housing Group, make sure that you have a plan to help your senior residents with their transportation needs.