Cap rates are compressing, deal volume is growing and rent growth is increasing, according to a new BBG Real Estate Services survey of senior living professionals .
The survey, conducted in September and released Oct. 1, includes responses from brokers, investors, owners and operators, developers, real estate investment trusts (REITs) and other industry stakeholders.
Respondents indicated cap rates have “declined considerably” for all senior living product types, according to the survey’s authors. Cap rates also have tumbled compared to those BBG reported in a similar survey earlier this year in the spring.
Active adult cap rates decreased an average of 91 basis points in the last six months, while independent living cap rates fell 90 basis points, on average. Assisted living cap rates also declined by an average of 91 basis points in the last six months, as did CCRC cap rates. Memory care cap rates dipped 45 basis points in that time, according to the survey.
Although the survey’s authors didn’t publish data on respondents’ expectations for rental rates or transaction volume, they indicated that “increasing transaction volume and projected rental rate growth” were key takeaways from the most recent survey.
In 2025, a rash of smaller sales are boosting senior living mergers and acquisitions (M&A) to record levels, although total dollar volume remains lower than in previous years.
Recent National Investment Center for Seniors Housing & Care (NIC) data showed independent living operators raised asking rates 6.7% while growing in-place rents by 8.1% in 2025 compared to 2024. Assisted living raised asking rents 5.9% and in-place rates by 5.5% between 2024 and 2025, according to NIC data. In 2025, independent living now holds pricing power over some of the other rungs on the care continuum.
“Historically, we’ve seen more uniform rate growth across the continuum,” NIC Senior Principal Omar Zahraoui told Senior Housing News in September. “What stands out in 2025 is the divergence, with IL surging to record-high initial rent growth while AL and MC are experiencing widening discounts.”
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