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Recent insights have shed light on the challenges facing new development in the senior living industry. From construction slowdowns to future implications, the landscape is evolving. A closer look into the factors behind this slowdown reveals a need for proactive measures. Waiting for interest rates to decrease may not be the best strategy as trends are expected to shift in the next few years. In a members-only SHN+ Update, key takeaways include the importance of operator aggression in development growth, potential easing of construction challenges in certain markets, and the double-edged nature of limited supply driving demand. The time for action is now.
Being proactive vs being passive
With construction of senior living communities falling short of projected demand, the industry faces a crucial decision. Will stakeholders proactively prepare for the future or maintain a passive stance? Signs indicate that construction challenges may be easing in some primary markets, hinting at a potential uptick in development activity. Historical trends suggest that waiting too long to act may be risky. While some regions remain behind in construction rates, positive growth in certain areas offers hope for the future. The time to capitalize on these trends is now.
Why limited supply, occupancy gains can’t be a cure
Occupancy gains in senior living properties present a positive trend, but the reliance on limited supply is not a sustainable solution. As the aging stock of properties requires modern amenities to attract new residents, operators must invest in renovations and repositioning. The momentum of demand surpassing inventory growth highlights the need for continued investment in CapEx. The upcoming ReBUILD conference will showcase how providers are reimagining their communities through innovative construction projects. It’s time for senior living providers to take action and embrace the evolving landscape.
