• Seniors housing demand should remain at relatively healthy levels in 2018, given expected steady economic growth and an improving housing market. However, new supply will put short-term pressure on occupancy and/or rent growth in select markets.
  • For investors, the top concern is property-level operating costs, according to the CBRE survey. The second highest concern is construction activity (supply vs. demand fundamentals), but the percentage declined from the previous survey.
  • Controlling property level operating expenses will be essential to maintain valuations in 2018.
  • Most survey respondents (63%) expect cap rates to remain firm over the next 12 months. 
  • Investor interest is gravitating to the more lifestyle focused segments of seniors housing. Independent living was identified as the best investment opportunity (36% of responses), followed by assisted living.