The Impact of the Coronavirus Pandemic on Senior Living
Last year, Marcus and Millichamp also noted increasing investment activity in what could have been a “recession-resilient asset class”. By the second quarter of 2019, homeownership among 75 and above stood at 76%. And prior to the start of coronavirus lockdowns, the senior housing market saw “approximately $1.3 billion in transactions in February.”
The pandemic is expected to change these positive fundamentals due to strict quarantine measures in hard-hit states like New York and New Jersey where assisted living and continuing care communities will need to comply with the government’s policies on coronavirus response all while keeping their operations from thinning out. Hence the people now a days are approaching the experts for the best apartment investing ideas.
According to a special report by Marcus and Millichamp, the coronavirus pandemic is causing major disruptions in the senior housing sector. This is obvious as senior populations are the most vulnerable to CoViD-19, the fatal disease caused by the coronavirus.
Senior living operators see the need to offer incentives and compensation packages and other interventions for their staff. With the enactment of the Coronavirus Aid, Relief, and Economic Security Act, the government seeks to prop up vulnerable sectors such as senior living. The National Apartment Association, for its part, is also asking Congress to provide mortgage forbearance to multifamily property owners, according to a Fox Business article.
Sure enough, the senior living industry remains an important factor in the midst of this crisis. Assisted living and continuing care communities are in the forefront of securing the elderly from the threat of infection. Property owners see themselves in the frontlines by ensuring the daily needs of residents. They can allocate equipment that’s appropriate for handling infectious diseases and provide for proper work arrangements for their community management teams.
On the other hand, investors and property owners will need to look at what the future holds for the sector itself. Indeed, the “new normal” beyond the coronavirus quarantine is putting pressure on acquiring and marketing assets geared towards assisted living, memory care, and, more importantly, independent living which caters to the multifamily sector. This would mean adopting measures such as virtual tours that allow prospective tenants to view units through their PCs, phones, or tablets. Targeted marketing strategies are also important to reach out potential residents who are looking for communities providing higher levels of care.
If they are able to play their cards right, investors may as well see vacancy rates rise in the coming months to compensate for the initial slowdown that took place in March. It is only a matter of seeing how the sector can real from the downturn itself.
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