We asked the experts what they foresee for the senior housing lending market for the rest of 2025 and into 2026. Here is what they had to say below. If you want a more in-depth article about predictions for the senior housing lending sector — including active lender names and terms — make sure to check out our premium Crittenden Report content.
Hymie Barber, Managing Director, Catalyst/Cambridge Healthcare Finance
The best-of-class operators always thrive because patient/resident care is first and foremost in their playbook. Financial success follows those operators.
Brent Holman-Gomez, SVP, Cambridge Realty Capital Companies
Skilled nursing facilities are being viewed favorably compared to senior housing properties, as the NOI has not suffered as dramatically from labor and other cost inflation. Properties without operating cash flow have few mortgage options; even private and bridge lenders demand nearly 1.0x DSC. Senior housing assisted living and memory care continues to re-balance labor and other costs, with profit margins and debt service coverage frequently dropping.
Austin Sacco, Managing Director, Berkadia
We have seen a substantial uptick in lending activity from both existing lenders and new lenders in the senior housing sector over the past 12 months. We expect lending volumes to continue to increase. There is plenty of liquidity for sponsors being provided by banks (both regional and national), debt funds, life companies, the GSEs and HUD. Our prediction for 2026 is that we will continue to see additional debt liquidity enter the market from all lender types along with the reemergence of new construction lending.
We expect to see many regional banks continue to get more aggressive on transactions. They now realize they are competing against the agencies for stabilized products and will need to continue to offer solid terms and flexibility to sponsors.
Nachum Soroka, Director – Healthcare Group, Eastern Union Funding
The sector will continue to expand as operations of the sector (rents, occupancy and staffing) continue to stabilize. Sustained high interest rates are still leaving many banks to underwrite conservatively.
