As we wrap up the fourth quarter of 2023, the outlook for the multifamily housing sector is decidedly mixed. The National Association of Home Builders reports that persistently high interest rates, low affordability, and elevated construction costs have created challenging conditions for the housing industry.
From conversations with our partners, we know that investors across the mid-Atlantic are watching and waiting — feeling the effects of higher capital costs, a tightened lending environment, and elevated interest rates.
Even so, CBRE expects that demand for rental housing will gain momentum this year. CRBE projects that an additional 2.3 million new units will be needed nationwide to maintain healthy market fundamentals over the next 10 years.
Senior living is one of the brighter spots on the horizon for the multifamily market. According to Senior Housing News, the category could potentially be shaping up for a gangbuster year.
Senior Housing News
“2024 will bring pre-pandemic occupancy levels and potentially ‘gangbusters’ levels of transactions for the senior living industry. Or at least, that is what recent trends in census gains and dealmaking say. In October, the National Investment Center for Seniors Housing & Care (NIC) along with NIC MAP Vision released their latest quarterly occupancy report, which showed that the industry is on track to regain pre-pandemic occupancy in the fourth quarter of 2024…. In the third quarter of 2023, average senior living occupancy in the 31 primary markets that NIC MAP Vision tracks rose to 84.4%. Gains were even more pronounced for certain segments in the 68 NIC MAP secondary markets, such as assisted living communities, which have already exceeded pre-pandemic occupancy totals in a ‘remarkable’ 9.8% increase from the hardest days of the pandemic. The latest average data represents the industry’s ninth straight quarter of occupancy gains — and the trend lines portend more growth to come.” — Tim Regan / Senior Housing News [read more]
Shockey’s Recent Senior Living & Multi-Family Projects
Sancerre Atlee Station, Mechanicsville, VA
Developed by NexCore, Atlee Station provides 103 well-appointed units for assisted living and memory care, along with high-caliber healthcare and daily activities for residents. Exterior luxury amenities include outdoor dining, gardens, a bocce ball court, walking paths, and a sunroom. Interior features include card and art rooms, a library, spa, fitness center, theater, salon, and a coffee bar with café seating.
Glenmere Apartments, Rockville, MD
Glenmere infill addition, at the center of The Village at Rockville, includes a 130-unit independent living apartment building, landscaped courtyards, and underground parking. Built during the pandemic — and despite industry-wide supply chain disruptions — the project was delivered on time and nearly $1 million under budget, winning an “Award of Merit for Residential/Hospitality” from ENR Magazine.
Providence Point, Annapolis, MD
Shockey is currently serving as CM for the new Life Plan Community The Village at Providence Point. Owned/developed by National Lutheran Communities & Services of Rockville, the campus includes 246 independent living apartments and duplex cottages and a healthcare center with 16 assisted living memory support units and 16 skilled nursing beds. Architect is Perkins Eastman of Washington, DC.
Q Apartments, Winchester, VA
Part of the Aspirational Village at Shenandoah University (SU), the Q offers the most modern features in student housing and was built to house the school’s upper-class student leaders. Each fully-furnished, 1600-SF apartment comes complete with marble countertops, fully-equipped kitchens, four single-occupancy bedrooms, and two bathrooms. Communal porches and green spaces enrich the experience.
Want to Talk Housing?
We’ve built millions of square feet of housing, and we know a few things about getting a project built quickly, with value in mind. If you have a multi-family, senior living, student housing, or workforce housing project in your future, please let us know. We have a team of pre-construction experts standing by who can help with cost modeling projections and site development questions. Reach out to Janelle Becker or Bill Wiley to get the conversation started.