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New buyers and homeowners are coming into senior dwelling, fueling transaction exercise as established teams broaden companies to reap the advantages of boomer-driven demand.
Dealmakers reported practically 21% extra transaction exercise in 2025 in comparison with 2024, in keeping with deal exercise tracked by Levin Associates. A separate report by the Nationwide Funding Heart for Seniors Housing and Care (NIC) exhibits senior dwelling buyers are within the “quick lane” for development this 12 months, pivoting from “wait-and-see” to “should act” to make transactions pencil out.
Demographic knowledge can be fueling funding development and M&A exercise. By 2030, all child boomers will likely be at the least 65 years-old.
Transaction exercise surged in 2025 with aggressive pricing and sturdy bidding exercise, with offers largely together with large-scale property above 90 to 100 models with full continuum of care companies. That continued funding exercise is carrying over in 2026, in keeping with JLL Capital Markets Senior Administration Director and Co-Chief on Senior Housing Rick Swartz.
“We must always get good about senior housing as a result of it’s a compelling argument for funding and that’s what’s driving this improve in new exercise,” Swartz stated.
Because the senior dwelling trade strikes from a once-niche actual property phase to a sought-after class, new funding teams are certainly getting ” good” about development and scale.
New buyers are in search of a variety of property, from Class-A, high-performing properties to turnarounds as operator choice turns into vital for buyers in search of robust returns throughout robust demand for senior dwelling.
‘Now could be the precise second’
Given robust forecasted and already-present demand, 2025 funding exercise moved from being “only a rebound story” to considered one of sustained funding development for each new funding teams and established corporations, in keeping with Berkadia Senior Vice President and Head of FHA & Seniors Housing Finance Steve Ervin.
A mixed lack of latest improvement and rising demand for senior dwelling has made the asset class extra engaging because the trade has mounted a multi-year occupancy and margin restoration since 2021. Within the third quarter of final 12 months, unbiased dwelling occupancy reached 90%, NIC knowledge exhibits, signaling robust footing for the sector in 2026.
Final 12 months noticed the doorway of a number of new trade gamers attracted by these circumstances.
In June of 2025, New York Metropolis-based Macquarie Asset Administration launched Well being Wave Companions, specializing in senior dwelling funding alternatives led by former Ventas Chief Funding Officer John Cobb as CEO. In an interview with SHN, Cobb stated present demand culminating with the constraints of low new provide created “an inflection level” the place demographics tailwinds and restricted new improvement may proceed to gas funding exercise in 2026.
“Our growth is pushed by each conviction and necessity,” Cobb stated. “Now could be the precise second as a result of senior housing fundamentals have by no means been extra compelling.”
Chicago-based Citrine Funding Group, specializing in turnaround and value-creation funding alternatives, launched in 2023 after seeing how the Covid-19 pandemic reshaped the sector, in keeping with President Lynn Jerath. In that point, Citrine closed on over $150 million in property below administration as of August of 2025.
Expectations between consumers and sellers are “extra in alignment” and returns on profitable senior dwelling properties are “extra engaging” in comparison with different actual property lessons, Jerath stated. Previous missteps from the trade’s sorted M&A historical past got here from over-leveraging, ineffective administration or misjudging an operator’s skill to stabilize a property—all steps Citrine and different new funding corporations should heed, Jerath added.
“We prioritize placing the most effective group in place, underwriting conservatively, capitalizing every funding correctly, and taking a hands-on strategy to funding administration,” Jerath added. “Every property we purchase will need to have a path to operational enchancment and group uplift.”
In July of 2025, Chicago-based The Kiser Group launched a brand new senior housing brokerage enterprise, led by longtime senior dwelling monetary companies knowledgeable Mark Myers. Occupancy and charge development seen since 2022 gave the Kiser Group the boldness to broaden monetary companies in senior dwelling, Myers instructed SHN, noting that favorable buyer-seller expectations are pushing offers throughout the end line.
“Many occasions, consumers shock us and pay greater than we thought achievable,” Myers stated of exercise witnessed in 2025.
Leaving different actual property sectors behind for senior dwelling funding
Prior to now senior dwelling funding has typically been eclipsed by different sectors, together with multifamily actual property. However some multifamily buyers are turning to senior dwelling alternatives in 2025 and this 12 months.
Praxis Capital, led by CEO Brian Burke, offered its multifamily portfolio and entered senior dwelling M&A in 2025 based mostly on robust market fundamentals and demographic developments. Praxis Capital additionally shaped a three way partnership with Stacked Stone Ventures and President Kent Eikanas to create Praxis Healthcare. In 2025, the three way partnership closed on over $100 million in transactions and shaped new operator relationships.
“We’ve received a whole asset class buying and selling at what appears like decade lows,” Burke instructed SHN. “If you put all of the items collectively, it makes a extremely compelling time to spend money on senior housing.”
Discovering the precise senior dwelling operator to accomplice with is vital, a number of corporations interviewed for this story stated, noting that operators should align values and expectations with capital suppliers to cut back friction if challenges come up. Partnering with Eikanas helped deliver new relationships into the fold, Burke added.
New capital should be “very considerate” of their strategy for coming into senior dwelling, Burke stated, noting that throwing capital round with out understanding the sector can “tarnish the fame of the trade,” urging new teams to think about forming partnerships or hiring present monetary specialists within the area to develop their capabilities.
From institutional outlets increasing choices to new teams leaping into fray, new senior dwelling buyers should stay grounded in what kinds of transactions they search and keep the precise relationships that finest match their wants, in keeping with Ikaria Capital co-founder Jason Dopoulos. In early 2025, Dopoulos and different veteran financier Ken Gould shaped Ikaria providing a set of monetary companies to fulfill incoming urge for food for capital allocation.
Whereas circumstances are favorable, Dopoulos urged warning from new teams, calling for “underwriting self-discipline” that may defend the sector within the close to future.
2026: The 12 months of alternative as self-discipline nonetheless wanted
A number of specialists interviewed by SHN stated they anticipate quicker, extra aggressive market circumstances in 2026 as 2025 constructed momentum and an inflow of latest capital entered the area. This 12 months, Swartz anticipates “extra aggressive pricing” as improvement efforts stay muted.
“We’re beginning to hit some keystone offers which are at or in extra of alternative prices,” Swartz added.
However circumstances in 2026 could possibly be formed by owner-operator relationships, and the necessity for higher alignment in values, timelines for potential sale and monetary reporting necessities.
“The demographic and supply-demand developments we noticed in 2025 will solely speed up in 2026 as the primary child boomers flip 80. The ‘wave’ has arrived, and we are going to stay disciplined in our technique,” Cobb stated.
The 12 months forward will reward teams that may deliver repeatable execution, capital self-discipline, operator alignment and a platform that may resolve multifaceted capital wants, specialists instructed SHN.
“We anticipate elevated deal movement and a higher emphasis on high quality of resident expertise,” Jerath stated. “We want to develop considerably in 2026 with opportunistic acquisitions, operational turnarounds and partnerships that elevate each monetary efficiency and requirements of care.”
