Walker & Dunlop’s New Seniors Housing Report Shows Growth, Investment Opportunities and Increased Demand

As the leader in financing for seniors housing, Walker & Dunlop, Inc. shares emerging market trends and vital landscape analysis in its newly published Seniors Housing Outlook, “Navigating Growth, Innovation, and Investment in a Transforming Market”. The publication comes at a crucial time as this sector experiences significant demographic shifts and evolving healthcare needs for an aging population that continues to expand quickly.

By 2050, it is projected that one in five Americans will be 65 or older, up from 17 percent in 2020. This increase will significantly boost demand for seniors housing, creating both opportunities and challenges for industry stakeholders. Investment opportunities will be especially robust as need for infrastructure and services rise.

“We are seeing incredible growth and interest in the seniors housing sector,” said Ken Buchanan, executive vice president of FHA Finance at Walker & Dunlop. “Although the industry faces rising operational costs, regulatory complexities, and the need for enhanced resident care strategies, it is also ripe with possibilities in innovation, particularly in technology adoption and new service offerings.”

Operational Performance Insights:

• Operational performance in the seniors housing market has shown signs of improvement in 2024, but it still lags behind pre-pandemic levels.
• Occupancy rates have been steadily increasing, driven by strong demographic trends and limited inventory growth.
• Profit margins are gradually improving, though they have not yet returned to pre-pandemic levels.
• Rent growth has played a significant role in driving revenue, helping operators offset rising costs.

Walker & Dunlop has closed $600 million in seniors housing through the second quarter of this year involving 28 assets across 11 states, totaling 2,955 units, with an additional $361 million under agreement.

Walker & Dunlop will be showcasing the report and expertise at the NIC Conference in Washington, DC that starts today, September 23, 2024. The team will be available to discuss the latest market trends, share strategic insights, and explore opportunities with industry professionals.

"We look forward to connecting with both new and familiar stakeholders at the NIC Conference,” said Josh Jandris, managing director of Investment Sales at Walker & Dunlop. "As we look ahead, the future of seniors housing is set for significant transformation. Continued investment in infrastructure and services, coupled with a focus on addressing the diverse needs of an aging population, will be crucial for sustaining growth in this market."

For insights on seniors housing and to explore key trends shaping the market, download Walker & Dunlop’s 2024 Seniors Housing Outlook report here.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.