If the motto of the last few years was “survive until 2025,” then perhaps the new mantra should be “moving forward with cautious optimism.” While it may not be as catchy, it accurately reflects the findings of the 2025 Senior Living Outlook Report, the latest annual collaboration between Lument and Senior Housing News.
With 87% of respondents expressing a somewhat or very positive outlook for the months ahead, the sentiment across the industry is shifting. Many senior living professionals are anticipating brighter days and accelerated growth—a welcome change from the volatility of recent years.
Confidence in Growth & Market Dynamics
The cautious optimism seen in this year's report stems from several factors, including favorable demographics, improving fundamentals, and a stabilizing market. These factors are expected to positively influence debt proceeds, cap rates, and valuations, leading to increased deal activity.
According to the survey:
50% of applicable respondents indicate their company plans to acquire senior housing assets in the next year.
58% believe the industry will see an uptick in new construction starts, a dramatic rise from 22% in 2024.
83% expect rent growth in memory care, followed by assisted living (68%) and independent living (65%).
The confidence in rising occupancy rates across all acuity levels also signals a more stable environment for operators and investors.
Staffing Challenges Remain the Greatest Concern
Despite the optimism, the senior living industry still faces significant challenges, with staffing shortages ranking as the number one concern.
55% of respondents cited staffing as their greatest challenge—up 9% from 2024.
Occupancy concerns came in second at 20%, reflecting the ongoing need to attract and retain residents.
Many operators are also closely watching interest rates and operational costs, which continue to impact margins.
Mergers, Acquisitions, and Restarting Sidelined Projects
One of the more encouraging insights from the 2025 Senior Living Outlook Report is the anticipated return of M&A activity and previously sidelined projects. Approximately half of respondents believe that delayed developments will restart, bringing new investment opportunities into the market.
Looking Ahead: A Year of Opportunity & Adaptation
The 2025 outlook for senior living is one of resilience and opportunity. While staffing remains a challenge, improving fundamentals, growing occupancy, and renewed investment activity position the industry for a year of measured progress.
For the full survey results and detailed industry insights, download the complete report at Senior Housing News.
Krone Weidler, Founder & Principal
Cadre Healthcare Realty Advisors
1095 SE 177th Place, Suite 404-M14
Summerfield, FL 34491
C: (813) 842-2365
O: (866) 355-3594
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