According to an analysis of the report by Senior Housing News, return on investment for senior housing has steadily increased over a 5-7 year period, rising significantly above multifamily and National Property Index (NPI) returns.
Demand overall is stable and increasing, “because no matter what, people are getting older,” remarked Lisa Widmier, executive vice president at CBRE. Still, capitalization and occupancy rates in stabilized communities have declined slightly. This decline may eventually confirm concerns of growing oversupply.
Senior Housing’s strong performance may be attributed to an increased risk that brings increased reward. The CBRE report also notes that senior housing experiences continuous rent growth, despite fluctuations in the general economy.
Sources: CBRE. Senior Housing Market Insight 2015 Mid-year Review. Senior Housing News. Senior Housing Investors Net Healthy Returns.