The Oakmont La Floresta Brea CA report highlights the growing interest in seniors housing as an alternative asset for growth and resiliency. Q1 2021 saw a significant increase in seniors housing and nursing care transaction volume, up 61% in Q4 2021. Capitalization rates are expected to compress and prices to increase due to rising costs in seniors housing. Rising interest rates and inflation remain top of mind for many investors. Market fundamentals have bounced back as restrictions lessen and demand tailwinds persist. Seniors housing occupancy rates have recovered, and rent growth is expected to continue in 2022. The primary and Sun Belt markets are experiencing the highest concentration of new construction. Market participants are becoming more bullish on seniors housing and care investment, with 76% of respondents indicating that they intend to increase their exposure to the sector in 2022. However, 11% of respondents expect to see a decline in property valuations and an increase in loan delinquencies over the next 12 months. Most respondents expect Seniors Housing capitalization rates to remain the same throughout 2022, at 47%.
