As the senior living industry digests the robust M&A activity in 2025, many are wondering what activity will look like in the new year.
It’s no secret that demographic data supports continued growth in the industry with the youngest baby boomers hitting age 65 by 2030. That data has fueled new capital entering the market resulting in record setting transaction volume.
Senior living assets are gaining attention from institutional investors and real estate capital markets. Industry volume and pricing trends are rising as liquidity improves and financing becomes more accessible. Investor confidence is rooted in performance data showing rent growth, occupancy momentum, and strong demand.
So, what fueled this level of interest in the senior living sector? One of the strongest forces is the sheer scale of demographic change. The oldest baby boomers are turning 80 this year, pushing demand to levels not seen in years. This is a defining trend and not just a short-term bump. These trends underscore that senior living isn’t just sustainable, it’s expanding.
While demand continues to surge, new construction remains historically low. Developers face high costs, financing challenges, and labor shortages, pushing inventory growth to multi-decade lows. The limited supply supports higher occupancy rates and sustained pricing power for operators.
The industry isn’t without its challenges. Senior living continues to face persistent workforce shortages and rising labor costs, which have ripple effects on service and margins. At the same time, policy shifts at the federal and state level, especially around reimbursement and care standards, are reshaping the operating environment. Operators are finding new ways to combat these issues. It requires rethinking strategies centered around staffing models, adopting new technology, and partnering with local healthcare systems.
2026 presents a compelling story of resilience and transformation for the senior living industry. Demand is strong and market confidence is returning among investors and operators. For operators, investors, and stakeholders alike, 2026 is a year of opportunity, one where strategic action can create sustainable value and lasting impact.
