Senior Living Development Bounces Back
The senior housing industry was prime for development and new construction opportunities at the start of 2020. Of course, this all changed several months into the year when the pandemic hit. But, things are once again looking up for the industry. Like many other industries, senior living construction came to a halt as providers grappled with the ramifications of the unprecedented pandemic. Instead of breaking ground on new facilities and updating existing properties, operators scrambled to implement safety protocols and adopt telehealth solutions that supported their older residents. Unfortunately, senior living development suffered as a result, experiencing the lowest levels since 2012.
In addition, occupancy rates hit an all-time low in January of this year, but things are looking up, thanks to vaccination efforts and a shift in the industry. Senior living communities stepped up to the challenge and leveraged technology and innovation to meet the changing demands of residents and staff. Now, nearly six months into 2021, senior housing developers are once again gaining traction, and new communities are popping up across the country.
Senior Housing Recovery Brings New Construction Opportunities
While protecting residents and helping facilities stay on their feet remain top priorities for operators, we are looking forward to new opportunities in the latter half of 2021. The pandemic may have put the U.S. housing market on hold, but now it’s hotter than ever with no signs of slowing down, despite a nationwide lumber shortage. As we enter into spring, commercial real estate is also experiencing a resurgence, which opens the door for senior housing. Things may not be back to pre-pandemic numbers - yet - but the numbers are moving in the right direction, which is evident by the number of new construction developments breaking ground.
As we discussed earlier this year, active adults are reshaping senior living investment opportunities and motivating developers. Expect more community-centric facilities focusing on well-being, socialization, and companionship as construction continues and the market bounces back. It’s still a seller’s market out there, making it an excellent time to invest or plan an exit strategy that will get you the highest price. Want to learn more? Contact our senior housing investment experts, Sherman & Roylance, today to learn more about the industry's outlook.