National Real Estate Investor's Beth Mattson-Teig takes a deep dive into the seniors housing new construction pipeline, showcasing exclusive research that shows rents rising even as occupancies tick up.
NREI conducted a survey of senior housing officials and found that nearly three-quarters of them (73%) see rents rising in the near-term, but more than half (56%) expect vacancies to rise as well. The survey was conducted jointly with the National Investment Center for Seniors Housing & Care (NIC).
The new supply pipeline, just as it is in conventional multifamily, threatens to put a damper on fundamentals.
“Given the new supply that has come into the market, it makes sense that competition would be rearing its head more now than a few years ago,” says NIC Chief Economist Beth Burnham Mace. Respondents also rated the state of the U.S. economy as a very or somewhat significant factor impacting occupancy rates at 55 percent and state of the U.S. housing market at 47 percent. Rental discounts and concessions were viewed as having the lowest impact on occupancies at 34 percent.