For the past twenty years the senior housing industry has experienced immense change and growth. The JCH Group has brokered hundreds of transactions and witnessed present changes influencing the future. Senior Housing investments don’t necessarily look like what they used to, and the senior housing industry has matured in unprecedented ways.
The Senior Housing Industry Withstands Shakeups
The senior housing industry has long withstood shakeups and challenges. For example, the skilled nursing sector experienced significant bankruptcies due to PPS, the perspective payment system. In 1997, skilled nursing operators had major issues with cash flow because of PPS and many had to shut down their operations altogether.
Then, with the Great Recession the senior housing industry was blanketed with an onslaught of external economic issues. Operators struggled to obtain debt for acquisitions and refinancing.
Fortunately, the senior housing industry came out of these down turns in style. In fact, it was one of the only product types that raised rental rates in 2010. Much of that is because the services the senior housing industry provides are need driven.
Seventy Percent of the Senior Housing Industry is Fragmented
As of 2015, REITS owned 30 percent of real estate in the senior housing industry. This leaves 70 percent of facility ownership for small regional, or mom-and-pop operators. Investments specialists believe that it is within this 70 percent that the evolution of the senior housing industry will continue.
The National Investment Center tracks and records all movement in the senior housing industry. At present, all signs point to the senior housing industry becoming an institutional grade asset class. This makes it the perfect opportunity for serious investments.
Expect the Senior Housing Industry to Further Evolve
The senior housing industry is a need-driven business. No matter what funds look like for any family, specialized care from skilled nursing, assisted living or memory care facilities are necessary. This fundamentally acts as a pillar for the senior housing industry no matter the overall climate of the economy.
Currently, the demand pipeline for senior housing continues to grow. People with capital from other products types are moving into the senior housing industry to make their play on senior housing investments.
While overall, the senior housing industry remains robust some regional markets are over saturated with new product. Across the nation there are six to seven markets with potentially too many construction starts and not enough demand. Investments specialists will wait to see just how long it will take for demand to catch up with supply. However, new buildings are always good for the senior housing industry, adding value and competition for better services for residents nationwide.
Your Housing Investment with the JCH Experts
The JCH Consulting Group is the top brokerage for your senior housing investments in the senior housing industry. With over 110 years of combined experience, our specialists are unmatched in acuity and experience, and we have the track record to prove it.
Make the most of your senior housing investment. Call the experts in the senior housing industry by contacting the JCH Group.