Senior Living Occupancy Surge, Supply Crunch
Key Questions
What is the current occupancy rate in senior living facilities?
Senior living occupancy has reached a record 89.5%, approaching 90%. This surge occurs despite construction at 2012 lows due to cautious lenders and high costs. Tight supply is fueling acquisition demand in markets like Boston.
Why is new construction low in senior housing?
Construction is at 2012 lows because of cautious lenders and high costs. However, HUD bridge lending has jumped 89% to $5.96 billion in 2025, signaling potential M&A and market stabilization. This addresses the supply crunch amid rising occupancy.
What does the increase in HUD bridge lending indicate?
HUD bridge lending surged 89% to $5.96 billion in 2025, pointing to increased M&A activity and sector stabilization. It helps bridge financing gaps in a supply-constrained market. Examples include new developments like Park City, KS facility and Bonaventure's 151-unit community in Corvallis, Oregon.
What are some recent senior housing developments?
Recent projects include a new senior living facility groundbreaking in Park City, Kansas; Bonaventure Senior Living's 151-unit community in Corvallis, Oregon; and McDowell Housing Partners and Miami Jewish Health's largest affordable senior housing in Broward, Florida. These counter the overall supply crunch. Another major opening occurred in Florida by the same partners.
How is the supply crunch affecting the market?
The supply crunch, with occupancy at 89.5%, is driving acquisition demand in tight markets like Boston. Low construction persists due to high costs and lender caution, but HUD lending growth supports stabilization. Selective new builds, such as in Park City and Corvallis, highlight ongoing demand.
Record 89.5% occupancy (to 90%), but construction at 2012 lows due to cautious lenders/high costs. HUD bridge lending jumps 89% to $5.96B in 2025, signaling M&A and stabilization. Tight markets like Boston fuel acquisition demand.