Takeaways included:
- U.S. seniors housing property market fundamentals continued to strengthen through the first half of 2024. Stabilized occupancy trended upward for the twelfth consecutive quarter, surpassing 87% as rent growth remained intact, averaging 4.5% through the first half of the year.
- 56% of survey respondents expect to see little to no change in capitalization rates over the next 12 months, with debt market liquidity being the top concern by 51% of the respondents followed by the current interest rate environment.
- Most investors are targeting core-plus investment strategies, at 49% of survey respondents. Nearly 34% of respondents are focused on opportunistic or distressed investment strategies.
- Basis point spreads between the going in capitalization rate and the terminal capitalization rate have compressed, indicating that market participants are expecting to see improvement in the current interest rate climate over a five-year holding period.
- The Federal Open Market Committee’s (FOMC) move to lower the federal funds rate by 50 bps, while signaling additional cuts ahead, should help destress near-term valuations and bring dry powder off the sidelines as buyer and seller expectations slowly come together.
Download the report for complete survey results, industry trends and key valuation indices.
