Walker & Dunlop 2025 Seniors Housing Outlook Emphasizes Resurgence and Increased Demand

As leaders in seniors housing financing and investment sales, Walker & Dunlop, Inc. shares emerging market trends and vital landscape analysis in its newly published Seniors Housing Outlook, “Navigating Growth, Innovation, and Investment in a Transforming Market”. The publication comes at a crucial time as this sector experiences renewed energy and heightened competition.

Rising sales volumes, intensified competition, and improved financing conditions are all signs that the seniors housing transaction market is experiencing a resurgence this year. Compared to 2024, activity has accelerated as debt markets stabilize, and investor confidence strengthens around the sector’s fundamentals. Transaction velocity is particularly strong for Class A assets in supply-constrained markets, where bid sheets frequently exceed 10 qualified offers.

“Investor enthusiasm has been increasing in the sector due to census growth, rent growth, lack of new supply and the baby boomer wave finally reaching an age demographic that is causing more and more demand,” said Kevin Guisti, senior managing director, FHA Finance at Walker & Dunlop. “We are seeing strong property performance helping sponsors refinance debt, pull out equity or sell their assets at healthy levels.”

Operational performance is on an upswing with national occupancy recovering to 88.1 percent, a second-quarter high, as net absorption continues to outpace muted new supply. Operators are reporting stronger financial health, with revenue gains outpacing expenses, labor pressures easing, and debt-service coverage ratios improving. Operators are benefiting from both robust demand and disciplined supply, while investors are encouraged by the sector’s long-term demographics.

The current demand outlook is compelling. The oldest baby boomers are entering higher-acuity, service-rich living years, with the U.S. Census projecting rapid growth in the 80+ population through 2030. This expanding cohort is likely to sustain move-in velocity and drive further revenue and NOI growth, especially in constrained submarkets.

“With tight supply, increased institutional capital allocations to the sector, and powerful demographic tailwinds, seniors housing is positioned for durable growth over the next 12–24 months,” said Brett Murphy, managing director, Investment Sales at Walker & Dunlop. “The sector has reestablished itself as a premier investment opportunity.”