Recession-proof senior housing REITs a ‘good bet’ for investors

Debate exists among experts about whether the United States is heading for recession or already is there, but there is some agreement that senior housing is a recession-proof investment.

Senior living occupancy is in recovery, according to the National Investment Center for Seniors Housing & Care. NIC Chief Economist Beth Burnham Mace previously told the McKnight’s Business Daily that increasing interest rates actually could contain a silver lining for senior living, and Forbes reported that senior housing investment “may become a particularly good bet if the U.S. economy slows into a recession.”

According to the latter media outlet, since the 1990s, senior housing has held its own despite economic challenges. The sector’s reputation for being recession-proof, however, dates back to the Great Depression, when occupancy rates held steady despite the challenging time, the writer noted.

Inflation hit a record high of 9.1% in June, the highest rate in four decades, according to the Wall Street Journal, “prompting investors and analysts to debate whether the Fed would consider a one-percentage-point rate increase, rather than a 0.75-point rise, later this month.” According to a recent report from JLL’s Capital Markets M&A and Corporate Advisory group, however, real estate investment trusts in general are “relatively well placed despite the recent volatility.”

The effects of the COVID-19 pandemic are starting to wane, according to JLL.

“Though COVID-19 will remain a fact of life we will all have to live with for the foreseeable future, we are seeing the COVID-19 ‘laggards’ start to make a strong bounce back, which is encouraging to see and is reflective of the broader U.S. psyche, which wants to move forward,” said Steve Hentschel, head of the mergers, acquisitions and corporate advisory group within JLL Capital Markets.

Senior housing is seeing its share of labor challenges, which, coupled with rising costs, could hamper the industry, but operators and investors remain optimistic.

“We lived through the Great Recession, and the business held up remarkably well,” Patricia Will, CEO of Belmont Village Senior Living and 2022 McKnight’s Women of Distinction Lifetime Achievement Award winner, told Forbes.“We are recession resistant,” she added.

Kathleen Steele Gaivin

Our Mission & Vision

Haven Senior Investments’ vision is to serve those who care for senior citizens and others in need of safe and nurturing housing.

Our mission is to serve the owners, operators, buyers, sellers, developers, and investors in the seniors housing and assisted living industry by offering a range of services to help them maximize their objectives and investment returns.

Our purpose is to glorify God by building profitable and sustainable businesses that advance His Kingdom and His children.

The Haven team brings a unique combination of finance, real estate, business development, operations, and healthcare experience to serve our varied senior housing clients. We operate on a team approach, which allows our clients to benefit from the experience and expertise of the whole Haven team. Our efforts are focused on the areas of independent living, assisted living, active adult, and communities that specialize in Alzheimer’s and memory care.

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Recession-proof senior housing REITs a ‘good bet’ for investors

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