Senior living operators face short-term turbulence when it comes to property values across all care types, but that turbulence could be an opportunity for well-positioned buyers looking to expand their portfolios. Higher interest rates have made inking new deals prohibitive in the short-term, with operators and lenders needing to get even more creative than before […]
NIC
Complexity and uncertainty are weighing down the senior living industry and stymying transactions in the short-term — but there is hope that long-term optimism will bring investors back to the table before too long. The next wave of age eligibility of older adults in senior living in the coming years could be just what the […]
With a recent quickened pace of move-ins, the memory care segment of senior living is gearing up for a potentially years-long period of growth and high demand. Operators are preparing in the second half of 2023 by prioritizing growth, programming, technology and cost efficiency. The impact of rate increases, broader factors like cost inflation and […]
The last week brought major health care business news — including the creation of a new home health giant valued at nearly $10 billion — that bears careful consideration by senior living providers. The new at-home care organization is being created through the merger of Option Care Health (Nasdaq: OPCH), a major provider of home […]
The senior living industry is standing at the precipice of a period of potential renewal — but to get there, operators will have to put up with more uncertainty and hardship in the meantime. On the one hand, labor is improving and many operators have eliminated or nearly eliminated the usage of staffing agencies. Margins […]
The increasing obsolescence of U.S. senior housing stock was a growing concern prior to the Covid-19 pandemic, and the issue has only become more pressing. As of 2019, the average age of senior housing stock across the 31 primary markets tracked by NIC MAP Vision was 21 years. Today, about 45% of the inventory base […]
Cost inflation, supply chain difficulties and wage pressures have led to a tough expense landscape for senior living operators. In early 2023, some of those pressures are easing, while others are stubbornly holding on. Take the price of oranges, for example. The cost of the citrus fruit is expected to be “extremely high” this summer, […]
Investors and owners closed fewer deals in the first quarter of this year as interest rates and other economic conditions continue to make senior living transactions harder. In the first quarter of 2023, the number of publicly announced mergers and acquisitions fell to just 98, representing a 13% drop from the 112 deals announced in […]
Commodity pricing and construction labor wage increases are leveling off — but don’t expect an uptick in new senior living projects or a decrease in overall pricing in 2023. That’s according to a new Senior Living Construction Costs report from construction firm Weitz Company. The cost of building new independent living and assisted living communities […]
Strong demand for needs-based units drove senior living occupancy higher in the first quarter of the year, marking the seventh consecutive quarterly increase since the industry’s pandemic occupancy low in 2021. That is according to the latest occupancy data from the National Investment Center for Seniors Housing & Care (NIC) and NIC MAP Vision. Overall […]