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Senior housing prices rise as investors bid up scarce assets
Investors spent $12.1 billion on senior housing in the first quarter, while second-quarter pricing per unit climbed to just under $185,000.
Senior housing property owners are getting firmer control of pricing as investor demand intensifies, even as many sellers stay put because operating fundamentals have strengthened, according to Bisnow, citing T7 Capital co-founders Ari Adlerstein and Josh Simpson.
Investors committed $12.1 billion to senior housing during the first quarter, the most of any quarter in at least 20 years, based on MSCI data provided to Bisnow in June. Over the past 12 months, senior housing was also described as the most active property asset class traded after data centers, as buyers from the traditional multifamily sector moved into the segment to pursue better yield.
A JLL survey cited by Bisnow found that about 86% of institutional investors plan to increase their allocation to senior housing this year. Even so, owners have been reluctant to sell, with Adlerstein saying it is harder to convince sellers to part with properties, despite their ability to set prices.
Second-quarter pricing per senior housing unit reached just shy of $185,000, up from $182,800 in the first quarter, and more than 30% higher than the start of 2025, according to MMCG Investment. Bisnow also cited NIC Map data showing rents for nursing care homes rose 5.6% year over year in the second quarter as the supply of available beds fell.