Crittenden Report Editors
After being hit particularly hard by COVID-19, this sector appears poised for some well-deserved growth. A possible recession. Rising interest rates. A continuing labor shortage. These are just some of the challenges facing the senior housing market. But most experts see the industry’s fundamentals continuing to improve.
That’s because that nasty miniscule spiked ball we all know as COVID-19 is not quite as nasty today as it once was. Yes, a number of real estate segments — including retail, hospitality and office — took it on the chin during the pandemic.
But senior housing hosts those who are most vulnerable to COVID-19. And the pandemic did indeed wreak havoc, causing outbreaks in many of the nation’s nursing homes and senior communities early in 2020. They had to be closed to new residents. Families could not visit. Some residents moved out.
“The back door was open, and the front door was shut,” said Aron Will, vice chairman & co-head of national senior housing at CBRE, describing how dire the situation was for the skilled care sector of senior housing.
For the most part, the pandemic is behind us, and the senior housing industry is rebounding. That’s because nothing stops aging, and the nation is aging at an accelerated rate as baby boomers keep celebrating birthdays. Every day, another 10,000 people hit 65.
And the senior housing market is looking to capture a considerable swath of the nation’s elderly. Senior developments are designed for a number of segments: active adult, independent living, assisted living, skilled nursing and memory care.
Read the full story in the Fall issue of The Crittenden Report: The magazine of real estate finance and investment.
