Last week, more than 3,000 professionals in the senior living world made their bi-annual pilgrimage to the National Investment Center for Seniors Housing & Care (NIC) Conference, this time in Austin, TX. And while it felt like every guy in the room was wearing the same blue suit for three days straight, there were some common threads worth sharing:
Demographics Fuel Optimism
NIC’s latest data keeps driving the point home—the demographics for senior living are only getting better. Occupancy is rising, inventory growth is at historic lows, and the boomer wave is picking up speed. Despite the challenges, everyone seemed to agree there’s no way around the upcoming “math problem” of supply and demand. Even national news outlets are starting to pay attention.
Limited-Partner Equity is the Problem
Yep, calling you out, equity providers. The biggest theme we heard from developers: projects are stuck on the shelf until they can find partners willing to put in equity. Debt is available (though still expensive), and proformas are penciling. What’s missing is the cash to get things moving. A few groups are starting to turn the faucet back on (good luck getting their names), but the bigger players are still focused on acquisitions instead of new builds.
Construction Costs Still Matter
Even with conditions improving for development, the hard costs of construction are still walking a fine line. What works and what doesn’t often comes down to efficient designs, smart value engineering, and fast timelines. This is why we put so much emphasis on being involved early in preconstruction—it keeps budgets front and center and helps keep costs under control.
Technology on the Rise
This year’s conference had record registration from technology vendors, which says a lot. There are plenty of players entering the space, and operators are showing real interest in what they bring to the table. One large operator told us their entire focus at NIC was meeting with tech companies that could streamline and optimize every aspect of operations. For a conference that’s usually all about deals, that’s a pretty big shift.
Final Thoughts
Overall, this was one of the most upbeat NIC Conferences we’ve been to in a while. Attendance was finally back to pre-COVID levels, and we had enthusiastic conversations with developers who see us as their construction partner. That says something.
It’s also why, while some of our competitors have exited the senior living market entirely, we’re hiring and leaning into the growth we know is coming. No one can say exactly when development will ramp back up, but it definitely feels like a storm is brewing—and we’re ready for it.
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