As with most other commercial real estate sectors, the lack of liquidity is the number-one challenge for those in the seniors housing niche, according to Jones Lange LaSalle's 2010 outlook for the segment. The weak housing market, which makes some older homeowners hold off on selling their properties in favor of senior living, is also playing a major role.

Indeed, in the 12-month period leading up to March 31, 2009, the total number of senior housing units starting construction was down 37% from the prior year, and 45% compared to two years ago, report the National Investment Center for the Seniors Housing & Care Industry and the American Seniors Housing Assoc. Their recently released joint study, "2009 NIC/ASHA Seniors Housing Construction Trends Report," examines senior apartments, independent living, assisted living and nursing care facilities and continuing care retirement communities under construction as of March 2009 in the nation's top 100 metropolitan markets.

The good news, however, is that significant technological advances and new architectural designs will play a considerable role in maintaining the segment's strength as discerning seniors will increasingly demand more innovative amenities.