The JLL United States Spring 2022 Research Seniors Housing & Care Investor Survey and Trends Outlook report highlights that interest in seniors housing is increasing as investors seek alternative assets for growth and resiliency. The survey found that Q1 2021 saw an increase in seniors housing and nursing care transaction volume, up 61% in Q4 2021. Capitalization rate compression and price increases are expected due to rising costs in seniors housing. Market fundamentals have bounced back as restrictions lessen and demand tailwinds persist. Seniors housing occupancy rates have rebounded from the lowest points seen due to the pandemic disruption. The pace of rent growth in seniors housing accelerated through 2021 and is expected to continue in 2022. Primary and Sun Belt markets are experiencing the highest concentration of new construction. Market participants are growing more bullish on seniors housing and care investment, with 76% of respondents indicating they intend to increase their exposure to the sector in 2022. Most respondents expect seniors housing capitalization rates to remain the same throughout 2022, at 47%. Another 38% expect them to decrease.
