Senior Housing Development During COVID: Where Do Things Stand?
If 2020 and the pandemic have taught us anything, it’s that we must be adaptable and prepared for the unexpected. The senior housing industry understands this better than anyone, as providers, staff, and residents alike have faced numerous difficult challenges throughout the last nine months. Scrambling to keep up with the deadly virus that has affected more older adults than any other demographic, operators have been forced to get creative.
But established senior living communities aren’t the only ones facing hurdles due to COVID-19. Last year, it seemed senior housing would be one of the hottest real estate prospects for investors. And while COVID-19 certainly created short-term challenges, there’s good news for potential investors. According to the Emerging Trends in Real Estate report published by PricewaterhouseCoopers and the Urban Land Institute, senior housing is listed as a “fair” investment in 2021. In fact, the report ranks the industry as the 13th best investment prospect and 10th development prospect. Although the property type came in as the third-best development prospect in 2019, the pandemic has caused nearly every industry to stop and restrategize, so a label of a “fair” investment is certainly promising.
A Promising Future for Senior Housing Development
Current challenges brought on by COVID-19 will undoubtedly lead to accelerated changes for the senior housing sector. Many investors are already thinking outside the box, moving forward with smart designs aimed at modernizing the industry and meeting the changing needs of today. We’ve seen this with the rise of technology in senior living, and many operators are partnering with companies that offer custom solutions that support older adults.
The future may still be unknown in regards to the long-term effects of the pandemic, but senior living operators, caretakers, and residents are resilient and the outlook for the industry is far from bleak. Remember: Sherman & Roylance Real Estate Investment Services offers free property valuation and investment property assistance. Whether you were considering investing in an assisted living property or skilled nursing facility prior to the pandemic, or if you are curious about current opportunities, don’t hesitate to give our team a call today.