Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.
Issue link: https://seniorshousingbusiness.epubxp.com/i/566450
50 2015 ASHA 50 19 2015 the walls down. Previously, there was a stigma between assisted and independent living, but that has disappeared. Half of the current independent residents need some help with mobility. We have the fexibility to license buildings for assisted living and allow seniors to stay in place. The other advantage is that purpose-built independent living apartments are larger and more res- idential than assisted living units. The apartments feature large bath- rooms and a kitchen. That works well for the consumer we serve. Q: How would you characterize the senior living market overall? Cohen: It's still a very healthy market. The industry had a setback in the frst quarter of 2015 because of a harsh winter and a bad fu season, but we saw a rebound in May and June. The industry fundamentals are strong. We have a good housing market and the economy is improv- ing. The demographics are in our favor, and supply in most markets continues to be limited. Overall, the industry is well positioned. Q: How do you expect the seniors housing market to perform during the next two to three years? Cohen: Rent growth will be consistent with the 2 to 3 percent growth annually that we see now. One challenge the industry will face is affordability. We serve an age cohort who lives on a fxed income. Interest rates have been at about zero since 2007, and we don't expect to see a big change there. But I think we will con- tinue to see an improvement in occupancies. Expenses will be controlled, though labor costs could be an issue in certain markets amid talk of min- imum wage hikes. We expect good same-store growth in net operat- ing income. The business should generate sustainable growth over the next several years, and then you should see some really dramatic industry growth as the tsunami of demographics hits the market. The industry fundamentals are strong. We have a good housing market and the economy is improving. The demographics are in our favor, and supply in most markets continues to be limited. Overall, the industry is well positioned. A D V I S O R Y, E V O L V E D . Blueprint provides a solutions agnostic approach within the healthcare real estate industry, increasing optionality and maximizing value for its clients. blueprintHCRE.com