Over 75 industry leaders shared their perspectives for Cushman & Wakefield’s latest investor survey on the seniors housing & care market, offering a unique window into one of real estate’s most resilient sectors.
Favorable Landscape
The U.S. seniors housing & care industry continues to demonstrate resilience and momentum, with key market fundamentals strengthening across the board. Stabilized occupancy has risen for the seventeenth straight quarter, surpassing 89% overall and reaching 90% in secondary markets – a milestone not seen since 2017. Q1 2025 saw a record-high number of occupied units, with net absorption outpacing new supply by a factor of 2.5 to 1. Despite a seasonal tapering, annual rent growth held strong at 3.9%, supported by sustained demand and limited inventory growth. These favorable conditions have helped mitigate the impact of broader capital market volatility. However, secular tailwinds underscore the urgency to expand supply significantly, as peak demand requires the annual addition of 35,000 to 45,000 units—far above the current delivery pace.
Challenges & Opportunities
At the same time, the industry is grappling with challenges around affordability and capital markets. New design trends are attempting to address the affordability gap for the growing middle-income senior population, the majority of whom are expected to lack sufficient financial resources by 2029. Active adult communities are gaining traction, combining robust rent growth with more favorable multifamily-style operating metrics. Market valuations remain highly segmented, with capitalization rates varying notably across asset types, from low 6% for stand-alone independent living to 7–8% for assisted living with memory care.
Investor Concerns & Priorities
While over half of investor survey respondents believe cap rates have peaked, a third anticipate further compression in H2 2025. Interest rates remain a top concern, alongside renewed labor and inflation pressures. With distressed sales underperforming expectations and lenders resolving billions in troubled loans, investors appear to be shifting back to core strategies, preparing for a “higher-for-longer” interest rate environment.
Download Cushman & Wakefield’s full report for an in-depth look at market dynamics, investment outlooks, and what’s next for this seniors housing.