Understanding the Value Drivers in Senior Living Real Estate in 2025

Senior living real estate isn’t just about buildings—it’s about people, operations, and how care is delivered. In 2025, the value of these properties hinges on more than square footage or cap rate formulas. Operators and investors alike are learning that occupancy, acuity, staffing, and reputation are just as critical to valuation as location and NOI.

Take occupancy. It’s rebounding post-COVID, but not all communities are recovering equally. Independent living may look strong on paper, but if a facility’s mix is leaning more toward memory care or assisted living, the operational and staffing demands shift dramatically. That’s where understanding acuity levels and how they impact margins becomes essential.

Then there’s staffing. Wage pressure and retention challenges are still very real. A property with consistent staffing and a strong care model is far more stable—and therefore, more valuable—than one with high agency use or constant turnover.

For investors, this means that understanding the story behind the numbers is key. And for appraisers, it means digging into more than just comps—we need to look at the actual care model, regional labor trends, and projected reimbursement shifts.

At Lovelady Perspective, we specialize in valuations that factor in all of that. We don’t just run the numbers—we understand what drives them.

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