If you’ve been watching the real estate news over the past two years, you have probably noticed an increase in senior housing transactions. A number of the health care real estate investment trusts (“REITs”) and specialty REITs that have historically focused on nursing homes have pivoted to investing in senior housing communities that offer independent living, assisted living and memory care services. It seems like the major real estate investors can’t get enough of senior housing.
We’ve seen it in our practice as well. Major investors are snapping up senior housing communities from regional and mom-and-pop operators all over the country. In 2025, senior housing transaction volume hit $24 billion, and 2026 is supposed to be a great year as well. In a recent JLL Capital Markets Survey, 86% of investors said they plan to increase their exposure to senior housing this year.
With hospitals and health systems playing defense right now based on legislative changes, we believe they should consider exploring senior housing as an ancillary revenue source.
Below are five reasons why hospitals and health systems should consider a senior housing partnership.
- Demographic Tailwinds – Ask any senior housing operator about market demands, and they are likely to mention the growing number of seniors turning 65 each year. According to one article, about 10,000 Baby Boomers turn 65 each day. By 2030, approximately 73 million Baby Boomers will be age 65 or older, making up around 20% of the U.S. population.
- Mission Alignment – Most nonprofit hospitals are committed to supporting those in need by delivering health care services to the communities they serve. Providing senior housing is often consistent with the charitable mission of nonprofit hospitals and health systems.
- Part of the Continuum of Care – Senior housing is an important part of the continuum of care. A branded senior housing affiliation or partnership allows a hospital or health system to support residents in the communities through the various health care services it offers.
- Private Pay – Most senior housing communities are generally private pay. This means operators of the communities are able to increase rates based on market demands and increases in the cost of services. It also means regulatory burdens are lower when compared to inpatient hospital care. This creates an opportunity to grow profit margins more easily than traditional hospital services.
- Limited Supply – In many communities, there is a limited supply of market-rate and affordable senior housing. This presents an opportunity to create new senior housing communities while serving a defined need.
For additional information on this topic, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render or Hall Render Advisory Services contact.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
