75+ U.S. Seniors Housing & Care industry leaders responded to the latest investor survey
Key Takeaways:
- U.S. senior living property market fundamentals continue to strengthen. Stabilized occupancy trended upward for the seventeenth consecutive quarter, surpassing 89% overall, with secondary markets reaching 90% occupancy, a level not obtained since 2017.
- The number of occupied units reached a new all-time-high in Q1 2025 with net absorption outpacing supply growth by 2.5 to 1, as inventory growth remains near historic lows.
- Annual rent growth, though tapered from prior quarters, has remained intact, averaging 3.9% in Q1 2025, a dip that is likely seasonal as the sector emerges from winter months. This outsized occupancy and rent growth has helped counterbalance short-term turbulence in the broader capital markets.
- Secular tailwinds are stronger than ever. To meet market demand at peak levels, supply growth must increase by 35,000 to 45,000 units per year, beginning today. For context, the highest number of units delivered in a year was 34,000 with less than 10,000 units delivered over the trailing 12-month period, with construction starts dipping to a new low.
- Basis point spreads between the going-in capitalization rate and terminal or exit capitalization rate have widened signaling that market participants are underwriting “higher-for-longer” as it relates to interest rates.
Download the report for complete survey results, industry trends and key valuation indices.
