BBG expects capitalization rate expansion and rising operating expenses – if not offset by record-setting rental rate growth – could lead to a decrease in seniors housing pricing this year, according to its US Seniors Housing Investor Survey.

Capitalization rates for all seniors housing care levels are expected to remain flat or expand in 2023 with active-adult and independent living communities having the lowest cap rates and active adult cap rates are expected to be the lowest of all care levels surveyed skilled nursing and CCRC/LPCs are predicted to post the highest cap rates.

Further, "Rental rate growth for all care levels is expected to continue to increase significantly this year, consistent with the trends in the post-pandemic environment," according to the report, which also sees active adult communities having the highest stabilized occupancy in 2023 and skilled nursing having the lowest.