Last week the National Investment Center (NIC) hosted its annual conference in Chicago and had over 1500 attendees learning about current senior housing trends and networking amongst peers. The conference highlighted that while senior housing maybe down along with the broader commercial real estate market, it is more resilient than other real estate investment classes in the current economic environment based upon its ability to increase the rents and with stand decreases in occupancy. Participants expressed concern that with the current downtrend in construction financing, there may be a lack of new senior housing inventory during the next few years as that market has all but stopped.
The 3 day conference was highlighted by keynote speeches from Classic Residence by Hyatt CEO Penny Pritzker and comedian Ben Stein. Pritzker’s address focused on the current state of housing and some of her work on the President’s Economic Recovery Advisory Board. She identified several residential housing market trends that will affect senior living in the coming months including:
- Opportunities for policy to reach the maximum amount of people
- Continued use of tax policy to further the housing market
- Continued work with loan modifications between servicers and bond holders
- Possible strategies to re-invigorate the 2nd home and investment property market
- Reduction of expenses associated with residential lending transaction costs
- Expansion of the TALF and other programs for non-agency mortgages
- Continued focus on more data to assist with transparency in mortgage market
Additionally at the conference, NIC selected 21 "founding members" for its Future Leaders Council, who will serve up to three years on the newly formed board. They represent some of seniors housing and care’s top providers, financial institutions, and intermediaries. One of the goals of NIC’s Board of Directors was to identify and cultivate future leaders that will help form future strategies for the senior housing industry.
"We have high expectations for this talented group of individuals, who are already rising leaders in their organizations," said Kramer. "As part of their participation, they will serve on NIC committees and task forces, as well as on specific projects that benefit the industry and NIC. The NIC Future Leaders Council will gather formally as a group at major NIC events to discuss current issues, share ideas and recent successes, and ask questions of fellow members and industry leaders. For the listing of the 2009 Future leaders council, click here.