As 2018 continues to unfold, construction pipelines are expected to remain full. Near-record low occupancy levels in assisted living will remain tested, while occupancy pressures will grow in independent living as well.
The 2017 preliminary closed transactions data is in and it shows a slight decline in dollar volume compared to 2016. Seniors housing and care closed transaction volume in 2017 registered $14.1 billion, which included relatively weak second and fourth quarter transaction volume. The $14.1 billion includes $7.9 billion in seniors housing and $6.2 billion in nursing care. The total volume was down 2.8% from the previous year’s $14.5 billion, but down 35.5% from 2015 when volume came in at $21.9 billion. If these figures hold as we finalize the 2017 numbers then it will be the lowest year in closed transactions volume since 2012.
The Labor Department reported that there were 148,000 jobs created in the U.S. economy in December. This was below the consensus expectation of 190,000 jobs. This marked the 87th consecutive month of positive job gains for the U.S. economy. Revisions subtracted 9,000 jobs to the prior two months. For all of 2017, the economy generated 2.1 million jobs and averaged 171,000 per month. This marks the second time on record that the economy has created at least 2 million jobs a year for seven consecutive years (the first time was in the 1990s). The 2.1 million increase was the smallest since 2010, however.