Despite the challenges of the last 18 months, senior housing still offers investment opportunities. But market knowledge is key to success. Industry veteran Robb Chapin understands the dynamics of today’s market.
The path to recovery is never a straight line. While the Delta variant has changed the narrative once again and reportedly affected move-in rates in some seniors housing properties, overall occupancy and demand seem to be experiencing positive momentum.
"The pace of move-ins has slowed as the COVID-19 delta variant spreads primarily among the unvaccinated. In Wave 32, about one-quarter of organizations with assisted living apartments and/or nursing care beds, and about one in five with memory care units reported a deceleration in the pace of move-ins across their portfolio of properties in the past 30-days. Nursing care occupancy has taken a jolt with nearly 40% of organizations indicating that occupancy declined.
The total investment return for the seniors housing sector was a positive 0.54% in the second quarter of 2021. This marked the fourth consecutive quarterly gain after one quarter of negative returns in the second quarter of 2020 when total returns were negative 1.00%; that marked the first negative total return since 2012 and prior to that in 2009.