Construction of senior communities are still very popular, but with the new normal, they are getting a fresh design and construction updates to stay ahead of the market.
According to the Senior Housing News, “Senior housing appears to be weathering the crisis. Occupancy rates and move-ins are down and expenses are up, but move-outs are holding steady across the industry and operators have access to limited capital to facilitate acquisitions or refinance debt.”
“While owners and operators are stretched thinly dealing with Covid-19 response, forward-thinking providers, developers and investors should be alert to expansion opportunities as the pandemic alters the real estate landscape.”
2020 Senior Housing Outlook Report by the Senior Housing News
New construction is the top projected senior housing growth strategy for 2020. Acquiring is second, followed closely by renovation and repositioning.
Financing sources expand to include private equity
Private equity looks to play an expanded role in senior housing financing in 2020, with 44% of respondents citing it as their top targeted source of capital.
Assisted Living on the rise
Independent living is still senior housing’s most attractive investment asset, while the outlook for assisted living rose from fourth last year to second this year. Active adult rental attractiveness dipped.
Occupancy outlook for 2020
Occupancy optimism for independent living saw a great spike in the past 12 months, now neck-and- neck with active adult rental after a comparatively bearish 2019. Memory care is right behind those two, while fewer respondents expect CCRC occupancy to increase in 2020, perhaps because occupancy rates are relatively high already heading into the year.
Existing housing should ensure their establishments keep up with the needs of today’s residents.
Incorporating a fresh design into a new construction or a simple upgrade to an existing property can dramatically improve the environment, quality of life for the residents, and foster wellness. It will also go a long way towards keeping the occupancy rate high.
SWET Construction Group is proud to be a leading senior community contractor in the Southern United States. Our extensive experience and technical knowledge sets us apart and also allows us to keep contraction cost within the allotted budget.