Update: How the Pandemic Is Impacting Senior Housing

The National Investment Center for Seniors Housing and Care (NIC) just released its highly-anticipated fourth-quarter market report, shedding some light on what the end of 2020 looked like for the industry. As we have discussed in previous blog posts, the senior housing sector experienced a drop in occupancy during the height of the pandemic, averaging 80.7 % in the last quarter of the year. This is down from 82% in the previous quarter. While the difference is slight, it is something providers, investors, and sellers should pay attention to, as industry trends often have an impact when marketing, selling, or investing in a property.

Two months into 2021, the senior housing industry continues to anticipate financial relief to help combat the novel coronavirus and make changes that will benefit current and future residents, as well as staff. Although many older adults have had difficulty getting a COVID-19 vaccine appointment, new pilot programs aim to change this. As roadblocks to proper vaccine distribution are addressed, the senior housing industry remains agile.

Some Senior Housing Markets Thriving 

The NIC shows that some senior housing metro market locations are performing better than others, including:

• San Jose

• San Francisco

• Baltimore

• Los Angeles

More and more Americans are receiving the vaccination and, at the same time, senior housing providers are implementing programs that prioritize the safety of residents - as well as their bottom line. The industry is hopeful. We encourage you to download NIC’s report to learn more about specific markets or to see inventory growth trends. Although there was a slight occupancy drop last quarter, facilities are reinventing the wheel by embracing telehealth, leveraging digital marketing, and meeting the evolving demands of the industry.

As always, the Sherman & Roylance Real Estate Investment Services team is keeping a watchful eye on the market and is here to advise you. If you are interested in selling or investing in a property, or if you are looking for an appraisal, give us a call right away.