Investors, Operators Drawn To Independent and Assisted Living Under One Roof

Senior housing and care investors and operators see appeal in senior living communities that offer both independent and assisted living services, according to a new survey from professional services firm JLL (NYSE: JLL).

JLL’s Year-End 2017 Seniors Housing Investor Survey, released Thursday, included more than 250 potential respondents, including investors, operators, developers and lenders in the senior housing and health care space.

The results were striking: 86% of respondents said communities that had independent and assisted living options—with or without memory care—were “very or extremely desirable.” Similarly, nearly 70% of all respondents said the trend of communities offering more than one level of care was “definitely here to stay.”

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Other takeaways from the survey included:

— While 30% of those surveyed identified independent and assisted living communities as an “extremely favorable” investment, a whopping 56% ranked standalone nursing care investments as “not at all favorable.”

— The average prediction of revenue growth for independent and assisted living was 3.7% and 3.5%, while average expense growth for that sector was projected at 3.4% and 3.6%, respectively.

— Investors and operators are fretting over a “high risk” of overbuilding (44%), rising labor costs (53%) and attracting and retaining top talent (56%).

— Just over half of all respondents (53.1%) said the trend of optional a la carte pricing of services in independent living and the emergence of private-pay, age-restricted apartments as a major subsector “could have legs.”

Read the full survey here.

Written by Tim Regan

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