After leading the category for two reporting periods, assisted living has slipped behind active adult as senior housing’s biggest perceived opportunity for investment interest, according to the results of CBRE’s H1 2021 Seniors Housing & Care Investment Survey.
The survey is based on market sentiment collected from senior housing investors, developers, lenders and brokers throughout the United States. Results were released last week.
Thirty-three percent of respondents in the survey covering the second half of 2020 saw assisted living as the biggest opportunity for investment, compared with 28% in the latest survey. Active adult, however, has gone from a perceived 15% opportunity for investment interest in the second half of 2020 to 31% in the first half of 2021.
Capitalization rates have begun to recover from the pandemic. Data show a period-over period compression of 13 basis points (0.13%). This change, however, represents an improvement from the 31 basis point, period-over period expansion during the previous survey. Class A and Class B assets fared the best, according to CBRE, with indicated compression of 14 basis points and 16 basis points, which were trailed by Class C assets at a compression of 10 basis points.
“The vast majority of the respondents opined that they expect positive census trends, or a recovery from the negative census trends that resulted from the COVID-19 pandemic,” according to the report.
