After more than a decade of growth in the senior living industry, the pandemic brought significant losses. As the world transitions to a post-pandemic scenario, however, JLL Valuation Advisory anticipates that the sector is going to face its strongest demand.
That’s according to the real estate and investment management firm’s “Seniors Housing & Care Investor Survey and Trends Outlook,” published Wednesday.
Market recovery is expected within two to four years depending on market location, JLL said.
“Despite the uncertainty and disruption caused by the pandemic, market participants remain bullish on seniors housing and care investment, with 53% of respondents indicating that they intend to increase their exposure to the sector in 2021,” according to the report.
Within the next 10 years, younger baby boomers will be looking for senior living options, so medium and long-term investments seem positive, JLL said.
“Additionally, the need to serve the middle-income population will continue to grow, resulting from the global impact of COVID-19,” according to the survey.
All in all, due to factors such as an aging boomer population and construction declines, plus high vaccination rates among residents and staff, the future looks bright for the seniors housing market, the firm said. Capitalization rates have started to compress from 2020 highs, indicating improvement in market confidence, with transactions volume expected to grow, according to survey results.
