American Senior Housing Association
The American Senior Housing Association (ASHA) held its annual conference this year in Palm Desert, CA. Between January 30 and February 1. Nearly 800 people attended this conference, making it one of the most successful and crowded ASHA events in recent history.
The JCH Group connected with over 30 existing clients in just two days. Those attending the conference included lenders, operators, vendors and others interested in the space. Players from different regions reported positive movement with no shortage of new opportunities. There were only minor concerns for how senior housing investments might change in the long term. Overall, those involved in the senior housing industry are enthusiastic for the future
An Unexpected Change for Senior Housing Investments
As the senior housing industry continues to boom, and more people are attracted to the playing field, changes are inevitable. Experienced operators are already seeing changes in the type of buildings being constructed in the senior housing space. Now, there has also been a change in where investors place their money and who these investors are.
For the past two to three years, REIT’s have dominated the senior housing transaction market, providing the highest senior housing transaction volume. Currently, private equity firms appear to be leading the way. While this may not sit well for more experienced players, the influx of private equity from newcomers and industry veterans has carved out a new leader in acquisitions.
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Operators in the assisted living or independent living sectors of the senior housing industry also seem to be on the move. Those who attended ASHA have reported that they have preparations in place to grow their portfolios. This either means they create new product through development or search for additional senior housing investments through acquiring existing assets.
Overbuilding Plants is a Small Cause for Worry
There is no doubt there has been a remarkable number of buildings under construction in the senior housing industry. Some operators worry that these buildings are of poor design and cannot be run efficiently. There are some markets where development is overheated and consequently may take quite some time for all of the new units to be absorbed. The downside to this will be the negative perception of lenders and investors going forward if there are large numbers of new builds that are half full.
However, new product is always good for the senior housing industry. In fact, with the demand for independent and assisted living facilities growing, year over year, it is only a matter of time before residents fill these new buildings, although at a potentially slower fill rate than originally projected.
We will have to wait and see what external factors come into play, interest rates, regulations, reimbursement rates etc. Overall, every attendee at the conference was very bullish on the senior housing market. No one foresees any major shifts or changes in the near future.
The Preferred Senior Housing Brokerage is the JCH Group
As its popularity rises, the senior housing industry continues to undergo changes. The experts at the JCH Group want you to make the most of the opportunities that appear.
As a loyal attendee of the ASHA conferences, our network delivers top resources, connections and information. We are a team of exceptional brokers and investments specialists, providing keen insight and advice to every client and customer. Our combined experience allows you to make your senior housing investment flourish within the senior housing industry.
To learn more about the ASHA Conference and how to make your move in the senior housing industry, contact one of our investments specialists at the JCH Group today!