The senior living real estate sector in the Midwest is experiencing significant growth, driven by demographic shifts and evolving market dynamics. This report provides an overview of current trends, investment opportunities, and challenges within the region. Market Overview Occupancy Rates: As of Q4 2023, senior living occupancy in primary markets, including key Midwestern cities, rose to 84.4%, just 2.7 percentage points below pre-pandemic levels. This marks the 10th consecutive quarter of occupancy gains, indicating a robust recovery post-pandemic. AFS Law Investment Activity: Assisted living remains a top investment target, with active adult and independent living communities also attracting significant interest. Investors are capitalizing on opportunities to acquire high-quality real estate below replacement cost, anticipating long-term demographic benefits. JLL Regional Trends Construction and Development: The East North Central region, encompassing parts of the Midwest, has seen varied construction activity. Data indicates ongoing development to meet the growing demand for senior housing, though specific figures vary across states. Plante Moran Cap Rates: Average cap rates for senior housing have increased by 16 basis points between October and March, reflecting shifts in investor sentiment and market conditions. Notably, cap rates for non-core market independent living Class A assets rose to 7.2%. CBRE Investment Opportunities Active Adult Communities: These communities are increasingly favored, benefiting from the leading edge of the baby boomer generation. They typically comprise younger, lower-acuity residents, presenting lucrative investment prospects. CBRE Assisted Living Facilities: With rising demand for specialized care, assisted living facilities offer substantial growth potential. Investors are underwriting rental rate increases, with some anticipating growth above 7% in the coming year. CBRE Challenges Regulatory Changes: Proposed staffing requirements and other regulatory adjustments could impact operational costs and profitability within the sector. Staying informed and adaptable is crucial for stakeholders. AFS Law Workforce Shortages: The industry continues to face staffing challenges, which may affect service quality and expansion efforts. Implementing effective recruitment and retention strategies is essential. Conclusion The Midwest senior living real estate market is poised for growth, supported by favorable demographic trends and increasing investor interest. However, navigating regulatory landscapes and addressing workforce issues remain critical to sustaining this momentum.
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A strong quarter for the senior housing market nationally. Here are the Q2 2024 AL (assisted living) stats to note: - Occupancy (National Average): 84.3%, just ten BPs below peak levels in early 2020 - Markets with Highest Occupancy: Boston (90.6%), Tampa (88.8%), Baltimore (88.8%) - Units Under Construction: 900 new starts this quarter, the lowest number of units under construction since Q3 2014 This asset class continues its positive momentum...
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Is buying a home too expensive? In response to affordability challenges, there's a rising trend towards multigenerational and creative living solutions. Real estate experts such as Tim Syrianos of Re/Max Ultimate Realty and Richard Mariani of CountryWide Homes point to a growing preference for multi-unit homes and customizable floor plans that accommodate multiple generations under one roof. This shift is driven by high housing costs and the demand for innovative housing options. Karen Yolevski of Royal LePage Real Estate Services underscores that multigenerational households are now the fastest-growing household type in Canada. If you're considering multigenerational living or co-ownership reach out to explore homes that could meet your needs. https://lnkd.in/gmARdFMD #amuthahaslam #toronto #torontorealestate #multigenerationalliving #realestate #housingaffordability #creativesolutions #homedesign #realestatetrends #canadahousing
Multigenerational and creative living solutions on the rise in response to affordability challenges
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Insights into Calgary's Real Estate Landscape: CBRE Analysis Calgary's real estate market is undergoing significant shifts due to record migration, offering strategic prospects in residential and commercial sectors. CBRE's analysis delves into how this demographic influx is reshaping housing demand and commercial viability in key urban areas. In the residential realm, neighborhoods like Beltline and Bridgeland are experiencing heightened demand for diverse housing options, impacting property values and prompting urban renewal projects. These areas present lucrative investment opportunities to tap into changing consumer preferences and lifestyle trends. On the commercial front, downtown Calgary and suburban districts like Seton and West Springs are flourishing alongside population growth. Retail spaces in busy corridors and modern office buildings are in high demand. Industrial zones such as the Foothills Industrial Park are also thriving due to increased logistics and manufacturing needs driven by the city's expanding population. The article also explores recent rezoning efforts in downtown Calgary to facilitate mixed-use developments and enhance urban density. These regulatory changes play a crucial role in shaping future development strategies and unlocking fresh investment avenues citywide. For a deeper dive into Calgary's real estate opportunities, check out the full CBRE analysis here: https://lnkd.in/gHMmBUzr.
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Discover the latest insights from Knight Frank 2024 Single-Family Housing Report, highlighting key trends and growth opportunities in the market: 🏠 Personalized Home Designs: Buyers seek bespoke experiences tailored to their preferences. 👩💻 Tech-Integrated Living Spaces: Integration of smart home technology enhances convenience and comfort. ♻ Sustainability Focus: Increasing demand for eco-friendly features and energy-efficient homes. 🏡 Urbanization Shifts: Preference for suburban living continues, driving development outside city centers. 📈 Opportunity for SFH Build-to-Rent (BTR) Sector Growth:Growing demand for rental options in single-family homes. 👩👩👦👦 Potential for developing communities with shared amenities to attract renters seeking community living. 🔑 Emphasis on property management and tenant services to enhance the rental experience. Having one of the most experienced teams in this sector and having handled more than 7,000 SFH BTR homes across 75 locations over the last 10 years Wise Living can deliver on all these trends and opportunities, if you'd like a chat about how you can enter this growing sector please feel free to reach. To explore the full report for detailed insights into the evolving landscape of single-family housing and the promising prospects for the BTR sector. 📈💼 https://rb.gy/sxo3lb
Why more investors are seeing opportunities in the single family housing for rent market
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The Outlook for Multifamily & Commercial Real Estate in California in 2025 As we approach 2025, California's multifamily and commercial real estate markets continue to be a focal point of interest for investors, developers, and property management professionals. The state remains a beacon of economic activity, innovation, and diversity, but it also faces unique challenges stemming from high costs, regulatory hurdles, and shifting demographic trends. This article delves into the key factors shaping the outlook for multifamily and commercial real estate in California and provides insights into what stakeholders can expect in the coming year. Multifamily Real Estate: Resilience Amid Challenges Demand for Multifamily Housing California’s housing shortage remains a pressing concern, with demand for multifamily housing expected to stay strong. The state’s population growth, driven by immigration and a steady influx of young professionals into tech and entertainment hubs, continues to create a need for affordable and middle-market rental properties. Urban Revitalization: Cities like Los Angeles, San Francisco, and San Diego are focusing on urban redevelopment projects, which include new multifamily developments near transit hubs. Workforce Housing: There’s an increasing focus on workforce housing, particularly in regions like the Inland Empire and Central Valley, where affordability issues are less pronounced compared to coastal cities. Affordability Challenges: California's high cost of living has pushed many renters to seek alternative housing options, such as relocating to more affordable states or opting for co-living arrangements. Multifamily property owners may face challenges related to vacancy rates in luxury units, especially if rental prices exceed local income growth. Office Space The office sector has undergone a significant transformation due to the rise of remote and hybrid work models. By 2025, the outlook for California's office real estate will hinge on adaptability and innovation. Key Takeaways for 2025 Multifamily housing will remain a cornerstone of California’s real estate market, driven by strong demand and ongoing affordability challenges. Commercial real estate sectors, particularly industrial and experiential retail, will continue to adapt to changing consumer and business needs. Sustainability and technology will play pivotal roles in shaping the future of real estate, with eco-friendly and tech-enabled properties commanding a premium. Regional disparities will persist, with coastal cities facing affordability issues while inland regions experience growth in both multifamily and industrial sectors. Investment strategies will need to prioritize resilience and flexibility, focusing on sectors with stable demand and long-term growth prospects. #multifamily #realestatedevelopment #propertymanagement #developer #californiaassets #californiaproperties #propertyinvestments #propertydeveloper #multifamilydeveloper #affordablehousing
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"Build To Rent offers better value than ever" As the Build to Rent sector has grown, it has also diversified. Single-family housing (SFH) supply has almost trebled since 2018, and HomeViews data shows the format performing well against pure Build to Rent and co-living sub-categories within the Build to Rent sector. Crucially, SFH residents rated their homes higher than residents in other new build housing developments, with Management and Facilities ratings being the key drivers. This proves what we’ve known all along: get the right people in the right places and see the impact! 🙌🏼 We connect exceptional talent with leading organisations to positively impact lives and careers. ➡ Connect with the team today. Read the full article including a link to a recent HomeViews Build to Rent Report 2024 👇🏼 #opr #recruitment #property #propertyrecruitment William Pennant AIRPM CIHM Zoe Smith Andrew Docwra Joss Heenehan Imogen Mattick Phumi Simelane Saoirse Murphy Luke Bates Kate Wood https://lnkd.in/gmWyHYCe
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The “most favorable fundamentals ever” in the senior living industry are setting up Ventas for an “unprecedented” multi-year growth opportunity fueled by demographic demand, Ventas, Inc. Chairman and CEO Debra A. Cafaro said Friday during a second-quarter earnings call. “It’s an exciting time for our business,” Cafaro said. “We began 2024 with momentum, which continued in the second quarter.” Writing for McKnight's Senior Living, Kimberly Bonvissuto reports that the Chicago-based real estate investment trust’s senior housing operating portfolio, or SHOP, has reported eight consecutive quarters of double-digit, year-over-year, same-store net operating income growth and expects “durable multi-year” NOI growth ahead of it in light of occupancy gains and revenue growth. There's more here: #realestate #seniorliving #housing #investing
‘Most favorable fundamentals ever’ in senior living tee up ‘unprecedented’ growth opportunities: Ventas
https://www.mcknightsseniorliving.com
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Ladies and gentlemen, today, I invite you to seize an opportunity that stands at the crossroads of necessity and profitability—an investment in new home construction. With a growing demand for affordable and modern housing, this venture is set to meet market needs while delivering substantial returns. Market Opportunity: The housing market is experiencing a sustained demand for new homes driven by factors such as population growth, changing lifestyle preferences, and low-interest rates. With urban centers expanding and remote work enabling new living patterns, there is a unique opportunity to provide high-quality homes in desirable locations. The shortage of inventory, combined with a desire for modern amenities, eco-friendly features, and community-centric designs, creates a ripe environment for investment. Our Vision: Our goal is to develop communities that are not just houses but homes—places where families can thrive, and residents can enjoy a quality lifestyle. We aim to build sustainable, energy-efficient, and aesthetically pleasing homes that cater to the needs of a wide range of buyers, from young professionals to growing families and retirees. The Financial Case: Investing in new home construction offers multiple revenue streams. First, there is a direct return from the sale of completed homes, with a strong potential for appreciation given current market conditions. Additionally, there is an opportunity to capitalize on the growing demand for rental properties, as our homes could be leveraged to create high-yield rental portfolios. Why Invest with Us? 1. Proven Expertise: Our team has decades of experience in real estate development, construction, and market analysis. We have successfully completed projects with exceptional returns for our investors. 2. Prime Locations: We have identified high-growth areas with excellent market fundamentals—areas where demand is consistently outpacing supply. 3. Risk Mitigation: By leveraging innovative construction technologies and sustainable practices, we will control costs and enhance margins, while also meeting the rising consumer demand for environmentally friendly homes. 4. Strategic Partnerships: We are building strong relationships with local governments, contractors, and suppliers to ensure seamless execution and cost efficiencies. Conclusion: This is more than an investment in bricks and mortar—it’s an investment in the future. The demand for new homes isn’t just a trend; it’s a growing necessity that offers you a chance to create significant value. Join us in building the next generation of homes and communities while securing impressive returns on your investment. Thank you for considering this opportunity. Let’s build the future together.
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Toronto's housing market is under severe strain due to rising living costs, high rental rates, a shortage of construction workers, and a growing population, leading to an imbalance between supply and demand. While there is an increase in condominium listings, most available units are small and unsuitable for families. According to the Toronto Regional Real Estate Board's June 2024 data, listings for 500-599 square foot units have surged by 50% over the past year, highlighting a gap in the market for family-sized condominiums. Despite the demand for larger, multi-bedroom units, family-sized condominiums only represent about 10% of the market. This shortage leaves many families and those seeking multi-generational living arrangements frustrated and underserved. A recent survey conducted with the Angus Reid forum revealed that although nearly half of Torontonians see condominiums as potential long-term homes, an overwhelming majority believe that better-built, larger units are needed to meet lifestyle needs. The market's focus on investor-oriented condominiums, which are primarily smaller units, has led to dissatisfaction among end-users. Developers must shift their focus from investor-driven designs to creating high-quality, spacious, and sustainable homes that meet the needs of residents. Building condominiums that prioritize liveability and quality can address the housing crisis effectively and ensure that Toronto remains a desirable place to live for people of all ages and life stages. Read the full article on: REAL ESTATE MAGAZINE
Addressing Toronto Housing Crisis The Need for Family Sized Condominiums and Quality Construction | Servillano Mado | Sales Representative
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