Nearly half of the senior dwelling traders surveyed in a current report from CBRE say they anticipate average will increase to rental charges for senior dwelling communities in 2025.
Among the many traders and actual property professionals polled by CBRE for its second-half 2024 U.S. senior dwelling report, 48% stated they anticipate common rental charges between 3% and seven% for lively grownup, impartial dwelling, assisted dwelling and reminiscence care communities within the coming six months. That could be a lower from the corporate’s earlier survey within the first half of 2024, through which 63% of respondents stated they anticipated to see rental charge will increase of three% to 7% forward.
On the similar time, nearly 1 / 4 of the respondents, 20%, stated they anticipated to see no change to senior dwelling rental charges within the subsequent six months. Within the earlier survey, nearly no respondents stated the identical factor.
“Not like our April survey with consensus expectations of a 3% rise in rental charges over the subsequent 12 months, there was no clear consensus in our present survey,” the report’s authors wrote. “No respondents anticipated lease decreases for any asset class besides expert nursing.”
In 2024 senior dwelling operators have taken a extra cautious method to resident charge will increase with a perception that they need to “watch out” about performing bigger charge will increase as they’ve carried out prior to now few years.
No respondents stated they anticipate to see lease development above 7% in that timeframe, and about 25% of respondents stated they don’t anticipate to see any lively grownup lease development within the subsequent six months.
Somewhat greater than half of respondents to the CBRE survey, 54%, stated they noticed no change to senior dwelling cap charges within the final six months. On common, senior dwelling cap charges fell simply 8 foundation factors in that timeframe.
Common cap charges for lively grownup communities decreased by 11 foundation factors between March and October, “practically offsetting the rise recorded throughout the prior survey,” the report’s authors wrote.
