The American Senior Housing Association held its annual conference this year in Orlando, Florida. From January 31 to February 2, most of the major players in the senior housing industry attended the event.
This was the perfect opportunity for operators, lenders, private equity firms and vendors to connect and collaborate at the start of the year.
Because of the focus of ASHA, most of the operators in attendance were from assisted living, independent living and memory care facilities.
The JCH Group had the chance to meet with new and existing clients for extended periods of time, trading information and resources while mapping out the senior housing industry for 2018.
Expect Stable Pricing in the Senior Housing Industry
While those looking to sell assisted living facilities push for a high price point, overall, buyers and sellers agree with the pricing when it comes to closing the deal.
With stable numbers for buying assisted living and selling assisted living, players easily get the capital they need from banks and private equity investors.
This means that there is plenty of money to build and open new senior housing investments in the senior housing industry. However, with so many new facilities opening soon, a new problem arises….
A Major Shortage of Talent for the Senior Housing Industry
Most operators in the senior housing industry are worried, not so much about pricing corrections, but with the lack of facility level talent available. When these new buildings open doors, they must be staffed appropriately. This includes ground-level caregivers, executive directors, directors of marketing and nursing, compliance consultants, regional managers, and everyone in between.
Operators in the senior housing industry see this as a growing dilemma because facility level staffing is already spread thin in existing operations. With new product opening on a weekly basis, new senior housing investment properties cannot afford to be short-staffed. Mega-operators may watch the quality of their services decline as the labor pool shrinks in relation to the number of facilities in operation. Small and midsized operators will feel this too as it becomes increasingly difficult and competitive to staff their buildings.
Now, operators new and old wonder, where will new talent come from?
Many suspect that eventually, mega-operators in the senior housing industry will have to create their own training programs or schools to equip facility level employees with the right skill sets. While no one wants to incur expenses, the shortage of talent is becoming more and more of an issue that most believe will only continue to grow.
Make Your Next Senior Housing Investment with The JCH Specialists
The JCH Group is the choice brokerage in the senior housing industry. We are the expert’s operators rely on for intelligent senior housing investments. Let us help you navigate the difficult terrain of the senior housing industry.
We offer a variety of services, whether you choose to buy/sell assisted living facilities or buy/sell skilled nursing facilities. Our team manages investments portfolios of all types and sizes to increase your wealth and profitability.
The JCH Group investment specialists are available with real-time information and extensive experience to make intelligence decisions that deliver unmatched results. To make your next senior housing investment the right one, work with the JCH Group, the leading brokerage of the senior housing industry.