Senior housing sector shows resilience to COVID-19 impact

Senior housing has shown strong resilience to the adverse impacts of the COVID-19 pandemic, with the vast majority of operators reporting pent-up investment demand and positive leasing trends in the first half of 2021, according to the CBRE U.S. Seniors Housing & Care Investor Survey.

Investors responding to the survey indicate significant investment growth is likely in the short term, with a full recovery expected in 2022. In the medium term, investors are encouraged by an aging population — baby boomers are nearing traditional ages for senior housing, with approximately 9,000 turning 70 years old every day — and a greater understanding of the threats posed by the pandemic.

Compression in overall capitalization rates for senior housing in 2021 to date show a reduced perception of risk for investors posed by the COVID-19 pandemic. Senior housing investment volume increased by 31 percent in first quarter 2021, compared to the previous quarter. The first quarter