Current dynamics could foster investment upside. The third quarter showed signs of recovery, with move-ins rising as more of the population became vaccinated. According to NIC Map® Data Service, occupancy rose in both the seniors housing and skilled nursing segments from July through September. Nonetheless, momentum remains impeded by concerns related to new strains of COVID-19. The near-term future is opaque with the pandemic still creating uncertainty; however, seniors housing and skilled nursing facilities remain a key piece of the care spectrum, and the current environment may present unique favorable circumstances for investors. Temporary hurdles coincide with longer-term tailwinds that are becoming more apparent. The recent ease in development is one component. Entering October, less than 48,000 seniors housing units had broken ground, down nearly 30 percent from the typical pace over the past five years. Meanwhile, population trends indicate robust demand is on the horizon, potentially outpacing supply and powering occupancy improvement.
