NCREIF Performance Report Q1 2022 The total investment return for the senior housing sector was a positive 1.08% in the first quarter of 2022. This marked the seventh consecutive quarterly gain after one quarter of pandemic-related negative returns in the second quarter of 2020 (negative 1.00%). Short-term total returns for senior housing remain low compared with the broader NPI, which saw total returns of 5.33% in the first quarter. Appreciation returns for the NPI dwarf those of senior housing, as the NPI was boosted in part by outsized returns in industrial properties (10.96%). Many investors have reduced their appreciation expectations for seniors housing as the impact of the coronavirus has weighed heavily on their view of the sector.
The Labor Department reported that nonfarm payrolls rose by 390,000 in May 2022 and the unemployment rate held steady at 3.6%. The report confirms that the labor market remains strong, despite the war in Ukraine and on-going supply-chain pressures. Concerns about rising wage costs and inflation are also supported by this report. Average hourly earnings for all employees on private nonfarm payrolls rose by $0.10 in May to $31.95. This was a gain of 5.2% from year-earlier levels but was less than the 5.5% gain seen in April.
NIC’s 2022 Leadership Huddle series continued May 25 with a deep dive into real estate market trends and an outlook on economic forces. Beth Mace, chief economist and director of outreach at NIC, was joined by Mike Acton, managing director of AEW Capital Management, and Mary Ludgin, head of Global Investment Research at Heitman, to discuss navigating federal monetary policy shifts, investment strategies amid record inflation, and opportunities in senior housing segmentation.
The Labor Department reported that nonfarm payrolls rose by 428,000 in April 2022 and the unemployment rate held steady at 3.6%. The report confirms that the labor market remains resilient, despite the war in Ukraine and on-going supply-chain pressures. Concerns about rising wage costs and inflation are also backed by this report. Average hourly earnings for all employees on private nonfarm payrolls rose by $0.13 in April to $31.85. This was a gain of 5.5% from year-earlier levels, just slightly less than the 5.6% gain seen in March. The data shows that the labor market continues to gain momentum and wage growth is accelerating. The report strengthens the Federal Reserve’s intention of raising interest rates further following the 0.50 percentage point hike in the fed funds rate announced earlier this week.