Why the senior housing boom might be ending

The senior housing golden age occurring since the end of the recession has been marked by record-high transaction volume, new capital in the sector and blockbuster deals. But the economic cycle that has proven so fruitful is nearing its peak, meaning it’s time that investors and operators take a hard look at what’s ahead for the industry, according to Beth Mace, chief economist and director of capital markets at the National Investment Center for Seniors Housing & Care (NIC). Mace outlined the current economic climate for the senior housing sector Friday at the NIC National Conference in the Washington, D.C. area. She covered the effect that impending target interest rate hikes and fluctuating cap rates could have, saying that net operating income (NOI) will have to increase to compensate for challenges posed by these factors. seniorhousingnews.com

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