The year 2015 holds much promise for senior housing operators, according to the 2015 National Seniors Housing Report from Marcus & Millichap Research Services.
“Every sector of the seniors housing market has positive momentum entering 2015 as the national economic picture brightens and demographic trends favor strengthening demand,” according to the report.
Independent living occupancy and rents should improve, and assisted living construction will accelerate to meet increasing demand. Skilled nursing will see a 30-basis point increase this year, to 88.5 percent, due to a slowdown in construction, and rents will increase as government funding limits reimbursements. Continuing care retirement communities (CCRCs) will see an increase in occupancy as older adults react to a slowdown in the recovery of the housing market. CCRC entrance fees will increase similarly to 2014.
All told, 2015 could be a “banner year” across the senior housing spectrum, the report authors maintain.