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Seniors Housing Prices Reach New Records

Average prices for seniors housing and care properties reached record highs last year across the continuum of care, according to Irving Levin Associates’ preview of its soon-to-be-published study, The Senior Care Acquisition Report.

Citing a favorable economic climate that features low interest rates, growing investor demand and plentiful capital, the report found that the average unit price for assisted living facilities jumped by 25% last year to a record $188,700 per unit. Independent living unit prices also set a record at $246,800 per unit, more than 28% higher than 2013. In addition, skilled nursing bed prices reached a new record at $76,500 per bed, 4% higher than the previous year’s record.

Stephen M. Monroe, editor of the report as well as The SeniorCare Investor, said that although some record highs were expected, he was surprised at the extent of new highs reached across the spectrum. 

“Investor demand has been very strong, and as prices go up, more owners are enticed to put their properties on the market to take advantage of this peak demand for seniors housing and care properties,” he said.

Records were also set in regard to mergers and acquisition activities in 2014. There were 294 publicly announced mergers and acquisitions, an increase of 26% over the previous record set in 2013. The total dollar value of the transactions more than doubled over 2013, also a new record at approximately $25.5 billion.

“The breadth of demand was extremely wide in the seniors housing and care market, which resulted in a record number of deals and dollars spent in the market in 2014. We do not see that changing in 2015 as long as interest rates remain reasonably low,” Monroe said.

Information on ordering The 2015 Senior Care Acquisition Report, 20th Edition, can be found at http://www.levinassociates.com/scardescription.

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