New permanent loan volumes closed for nursing homes in the third quarter of 2022 were 47% less than the volume for senior living, according to a recent blog post from the National Investment Center for Seniors Housing & Care.
As closed new permanent loans for senior housing overall reached a new low, falling by 21.6%, permanent loans closed for nursing homes decreased by 37.6% to $413.1 million.
The volume of new construction loans likewise fell for both senior living and nursing homes during that time frame. Senior housing new construction loan closings saw the largest quarterly decline since 2017, according to NIC. Skilled nursing construction volumes fell to their lowest level since the beginning of the pandemic in the first quarter of 2020.
“As a result of weak activity in both permanent, bridge and construction lending, total loan balances decreased for both senior housing and nursing care in third quarter 2022,” wrote NIC Senior Data Analyst Omar Zahraoui and Senior Principal Bill Kauffman. “On a same-store basis, the senior housing and nursing care loan balances fell by 1.6% and 3.0% in third quarter 2022, respectively.”
Although the number of delinquent loans increased slightly for both senior housing and nursing care, no foreclosures were reported for the sample in the third quarter of 2022, they said.
