A record number of seniors-housing units were absorbed in the second half of last year, propelled by the pent-up need for service care and availability of vaccines, according to Marcus & Millichap.
The recovery last year was driven by a pent-up need for the care services that seniors housing communities provide, as well as a higher level of confidence among prospective residents once more of the population became vaccinated. This allowed move-ins to exceed pre-pandemic levels, while move-outs largely stabilized. Nonetheless, momentum was impeded in early 2022 amid the omicron surge, though case counts have since fallen and fears of community transmission have generally subsided. The potential for another unexpected variant leaves the near-term outlook uncertain, but the strong recovery last year and an aging baby boomer demographic substantiate a robust demand outlook in the years ahead.
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