In keeping with our commitment to providing useful and actionable market intelligence, CBRE’s Seniors Housing & Care Investor Survey identifies new trends in the seniors housing & care industry and key insights on the state of the market.
Our earlier survey (H1 2020) closed at the end of February 2020 and provides a benchmark of investor sentiment prior to the pandemic. We have compared the earlier results with new findings from our H2 2020 survey to gauge how attitudes have changed. We have also added new questions that help to quantify COVID-19’s current impact on the seniors housing market.
Key Observations
- Overall, seniors housing capitalization rates increased from H1 2020 levels.
- Wider spreads in both Class A versus Class B cap rates and Class B and Class C rates indicate an investor flight to quality throughout the pandemic.
- Assisted living once again claimed the top spot for investor interest (33%), followed by independent living (22%) and active adult (15%).
- Year-to-date total investment was down 48%.
- More than two-thirds (70%) of respondents expect occupancy to increase over the next year, compared with 53% in the H1 2020 survey.
Historical Capitalization Rate Trends
Note: Time periods represent when surveys were done.
Source: CBRE Senior Housing & Care Investor Survey, H2 2020
