Senior living developers are currently biding their time as they await changes in the capital markets before starting new builds. With new construction starts potentially reaching a bottom in the coming months, developers are preparing to jump into action as soon as the market conditions shift.
Some developers have shifted their focus to other industries, such as multifamily, while others have slowed down their operations to be ready for the impending changes in the capital markets.
Despite the challenges faced by companies like Ryan Companies in the past year, developers are making strategic preparations for the future. With financing for new projects still difficult to secure and interest rates not showing signs of lowering, the industry has seen a decline in new senior living construction.
Developers bide their time
As construction remains tough to achieve in 2024, developers are focusing on maintaining relationships with lenders and equity partners to be ready to kickstart projects when the market conditions improve.
Companies like Silverstone Senior Living and Alliance Residential are utilizing this time to streamline processes, review strategies, and make necessary changes to prepare for the future of senior living development.
Preparing to move ahead
Looking ahead, developers like Ryan Companies are getting their house in order to swiftly move forward with projects once market conditions stabilize. With a focus on outreach to smaller equity groups, the industry is gearing up for a potential shift in the capital markets.
