Healthcare, Senior Living, Economics
Yesterday, the Federal Reserve raised its benchmark interest rate by .25 basis points (one quarter of on percent). The effective rate is now 5.25 to 5.50 percent. This is highest Fed Funds rate in 22 years. For the past multiple weeks, I have been writing on how the rate progress has impacted (negatively), seniors housing. … Read more
I’ve been closely watching the post-pandemic recovery of the senior care and living industries. In the past sixty days or so, I’ve written a number of articles/posts on occupancy recovery, factors impacting recovery, and factors that may further stress recovery trends. Within these posts/articles, reference material exists from sources like Fitch, National Investment Center … Read more
In a report provided by Ziegler investment bank, M&A activity in the non-profit industry segment is “up” for the first half of the year, near record levels. The report suggests the pace will continue into the second half. Compare this data to report from Levin that deal activity was down significantly in the first quarter … Read more
The June existing home sales report from the National Association of Realtors paints a depressing picture of the residential real estate market. The release is here: https://www.nar.realtor/newsroom/existing-home-sales-retreated-3-3-in-june-monthly-median-sales-price-reached-second-highest-amount Home sales down 3.3 percent Sales off 18.9% from a year ago Inventory available for sale didn’t change – 2.8 months (seasonally adjusted) Median prices rose again to … Read more
With reports from the Bureau of Labor Statistics out this past week, the job market remains relatively strong and healthcare within the market, similarly strong. Unemployment remained at 3.6% and labor participation remained at 62.6% (same for last four months) and the percent of the population employed remained at 60%. For the month of June, … Read more
In December of 2022, Fitch (credit rating agency) issued their outlook for the non-profit, Life Plan (CCRC) sector within the senior housing industry. Fitch outlooks are a primer for creditors seeking to determine lending scales for the upcoming year (bullish v. bearish). The Fitch outlook for the sector was “deteriorating”. The basis for this negative … Read more
One of the largest complaints about senior care and housing is cost. It is or can be, darn expensive. The best, most amenitized Life Plan projects can run hundreds of thousands of dollars to enter and tens of thousands more in monthly fees. Rates inflate typically, more than CPI each year. Lately, rate inflation has … Read more
Soon the target customer for most senior housing options, primarily independent living and CCRC/Life Plan will be folks born in the “baby boomer” generation. Boomers are folk born between 1946 and 1964, placing them today, between 76/77 and 58/59 years of age. They were born right after WW II and right at the beginning of … Read more
For some recent years, enhanced by the pandemic, the role of SNFs in the post-acute/senior living industry has tarnished. Residents and families often view the SNF as a “negative place” to reside, even if for short-term recuperation. Clinical staff take a dim view of the care complexity such that the SNF is a downgraded clinical … Read more
A growth, if you will, opportunity for many Assisted Living facilities is caring for a more clinically complex resident or resident group. The clinical complexity is very much tied to additional medical and physical frailty, necessitating access at times to skilled nursing and therapies. Most Assisted Living facilities, especially those not affiliated with a national … Read more