Comments on: Seniors Housing Development Rebound?

By: Steve Monroe

Steve Monroe — Fri, 12 Oct 2007 13:13:45 +0000

The slowdown will be more in the acquisition side of the market. After the market peaked this summer, the acquisition market is turning from a seller’s market to a buyer’s market, so over the next year a buyer may be in a good negotiating position. The real time to buy, of course, would have been three to four years ago before property values soared. But the industry will do well for many years.

By: Andrea Griffin

Andrea Griffin — Fri, 12 Oct 2007 05:10:36 +0000

I am also new to your site and find it very interesting.

Would you say that now is not the time to start investing in senior living facilities, given the slow down that appears on the horizon?

By: Steve Monroe

Steve Monroe — Wed, 12 Sep 2007 13:26:37 +0000

That is a very good question. I am not sure that I have seen a definition of “market saturation,” but it is a bit like that now retired Supreme Court judge commenting on pornography: “I can’t define it but I know it when I see it.” All kidding aside, I would guess saturation occurs when occupancy in a market drops below 90% (for IL and AL), and new development does not fill, usually stalling at 70% to 85%, although that may also reflect a poor location of a development or just a bad facility. I am sure feasibility consultants have a definition of lack of demand, meaning a certain percentage of income and age qualified people in a market is less than the number of units operating and under construction, which would say the market is “saturated.” But that, too, is always different market to market, because different areas of the country have different attitudes regarding retirement housing.

By: Kellie Moeller

Kellie Moeller — Tue, 11 Sep 2007 22:05:16 +0000

I am new to your website and enjoying the information. My question is:
How would you define whether or not a market is saturated?
Thanks.