The senior housing sector has been the constant talk among investors and in commercial real estate area since last week. Thus, survey has been conducted and the rumors about oversupply has been dismissed
According to the Senior Housing News, the research that has been recently conducted to find out if senior housing is indeed "highly attractive investment," since there's a fear of overbuilding or oversupply.
To get the scientific proof of its demands at the same time assure the investors, the National Investment Center for Seniors Housing and Care (NIC) in partnership with the National Real Estate Investor (NREI) has conducted the said research. The team has surveyed 182 respondents from the commercial real estate investors, which are taken from the databases of the organization. The responses have been gathered and tabulated to gather the specific insight concerning the industry's expectation of the said sector.
The result of the survey shows that 69% think that there will be more "senior housing construction in the next year." The result also reflects one third of the respondents think that rapid construction would lead to oversupply. This figure is the same result that came out when similar survey had been conducted. One third of the respondents believed that senior housing had been overbuilt.
The occupancy data might be otherwise, but then there are more than 70% of the respondents who "believe that occupancy will pick up in the next 12 months." That means the supply seems to be relatively low based on the projection of the respondents. The data shows a mean of 25.7.
In a separate news of National Real Estate Investor Online, it says that the Investors want to increase holdings. The investors are still "eager to portfolios amid stiff buyer competition." Noah Levy, head of the Senior Housing business for Prudential Real Estate Investors (PREI) believes that the sector has got more competitive than it already is. It has been revealed also that there are more capitals that are coming into this type of real estate investment, making the industry even bigger.
To date, PREI is one of those investors in the sector that are actively acquiring property, and it has been investing since the late 1990s. According to Levy, "the key investment criterion that PREI looks for is assurance that the operator, the real estate and the market are all a good fit."
