Closed new permanent loan volumes in the senior housing and nursing care sector hit a new series low in the third quarter of last year, falling by more than 21% and 37%, respectively.

According to the National Investment Center for Seniors Housing & Care, new permanent loans for nursing care were 47% of that for senior housing.  New construction loan volumes also declined during the quarter, with those for senior housing falling by more than 61% on a same-store quarter-over-quarter basis, the largest quarterly decline since 2017. Meanwhile, skilled nursing construction volumes fell to their lower level since Q1 2020.

Total loan balances decreased for both sectors, with senior housing falling 1.6% and skilled nursing falling 3%. The number of delinquent loans ticked higher in Q3, with delinquencies as a share of total loan volume clocking in at 1.2% for senior housing and 1.3% for nursing care. However, no foreclosures were reported.