Investors and developers may be planning to increase capital allocation and exposure to senior housing over the next 12 months, but the emerging asset class poses some significant challenges. According to a recent survey from CBRE, investors are concerned about the high operating costs of senior housing, particularly in active and lifestyle facilities.

In the Senior Housing and Care Investor Survey, 43% of respondents said that property operating and development costs remain the top concern. The concern over operating costs increased from a year ago, and have increased largely because of labor shortages.

Construction activity and related oversupply issues were the second biggest challenge, with 22% of respondents choosing these costs as a top concern also increased as a top concern for investors.

 

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.