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Senior Living Bid-ask Spread Narrowing, Paving Way For More Investment Activity

The gap between senior living seller pricing expectations and buyer offers has narrowed, leading to more transactions as industry-wide occupancy rates continue to climb.

That’s according to the mid-year Seniors Housing Market Snapshot by Partner Valuation Advisors.

Institutional capital interest in senior living “remains strong,” according to the report, conditions that SHN reported on earlier this year as new investors wade into the sector or sidelined groups get back into the deal flow. The investment climate shows “continued appetite” for stabilized, Class A independent living, assisted living and memory care communities.

Large-scale portfolio transactions involving communities in multiple states shows the apparent confidence investors have in the long-term fundamentals, the report states.

This is all leading to transaction and loan volume growing in the second half of this year as financing options expand, the report added.

Looking at the recent past, transaction volume increased about 70% from the first half of 2024, a record-setting year for senior living transactions, with almost $6 billion in deal volume.

Private buyers make up the largest pool of buyers so far in 2025 and strong occupancy with rental rate growth are “sustaining investor interest” in the face of broader macroeconomic uncertainty.

In the first half of the year, capitalization rates ranged from 6% to 6.5% for Class A properties, the report found.

The post Senior Living Bid-Ask Spread Narrowing, Paving Way for More Investment Activity appeared first on Senior Housing News.

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Senior Living Bid-ask Spread Narrowing, Paving Way For More Investment Activity

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