Navigating Rising Interest Rates and Senior Housing Shortages in Healthcare CRE

Interest rates remain elevated through mid‑2025, hovering in the 5–7% range for commercial loans. That environment puts pressure on deal underwriting—higher debt service eats into returns, and lenders tighten up. Yet healthcare real estate, especially senior living and behavioral health, is holding steady, driven by persistent demand and demographic tailwinds.

Take senior housing: the U.S. faces a glaring shortage, with over 560,000 units needed by 2030, while construction remains stalled. Occupancy is exceeding 90%, keeping revenue stable despite financing headwinds. And with baby boomers turning 80 faster than new beds can come online, investors are staying engaged.

For behavioral health, the story is similar. Elevated interest rates mean cap rates are widening—but demand is rising, and operators are seeking reliable data to support refinancing and expansion. Without market‑specific intelligence, you risk mispricing properties and missing strategic value.

At Lovelady Perspective, we arm healthcare investors, developers, and brokers with market intelligence—covering rate environments, supply/demand metrics, and sector fundamentals—so they can move confidently even when rates are volatile.

📅 Ready for a deeper conversation? Book a call: https://calendly.com/contact-loveladyperspective

📬 Prefer insights? Subscribe here: https://www.loveladyperspective.com/contact