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New investors and owners are entering senior living, fueling transaction activity as established groups expand services to reap the benefits of boomer-driven demand.
Dealmakers reported nearly 21% more transaction activity in 2025 compared to 2024, according to deal activity tracked by Levin Associates. A separate report by the National Investment Center for Seniors Housing and Care (NIC) shows senior living investors are in the “fast lane” for growth this year, pivoting from “wait-and-see” to “must act” to make transactions pencil out.
Demographic data is also fueling investment growth and M&A activity. By 2030, all baby boomers will be at least 65 years-old.
Transaction activity surged in 2025 with aggressive pricing and robust bidding activity, with deals largely including large-scale assets above 90 to 100 units with full continuum of care services. That continued investment activity is carrying over in 2026, according to JLL Capital Markets Senior Management Director and Co-Leader on Senior Housing Rick Swartz.
“We should get smart about senior housing because it’s a compelling argument for investment and that’s what is driving this increase in new activity,” Swartz said.
As the senior living industry moves from a once-niche real estate segment to a sought-after category, new investment groups are indeed getting ” smart” about growth and scale.
New investors are seeking a range of assets, from Class-A, high-performing properties to turnarounds as operator selection becomes critical for investors seeking strong returns during strong demand for senior living.
‘Now is the right moment’
Given strong forecasted and already-present demand, 2025 investment activity moved from being “just a rebound story” to one of sustained investment growth for both new investment groups and established firms, according to Berkadia Senior Vice President and Head of FHA & Seniors Housing Finance Steve Ervin.
A combined lack of new development and rising demand for senior living has made the asset class more attractive as the industry has mounted a multi-year occupancy and margin recovery since 2021. In the third quarter of last year, independent living occupancy reached 90%, NIC data shows, signaling strong footing for the sector in 2026.
Last year saw the entrance of multiple new industry players attracted by those conditions.
In June of 2025, New York City-based Macquarie Asset Management launched Health Wave Partners, focusing on senior living investment opportunities led by former Ventas Chief Investment Officer John Cobb as CEO. In an interview with SHN, Cobb said existing demand culminating with the constraints of low new supply created “an inflection point” where demographics tailwinds and restricted new development could continue to fuel investment activity in 2026.
“Our expansion is driven by both conviction and necessity,” Cobb said. “Now is the right moment because senior housing fundamentals have never been more compelling.”
Chicago-based Citrine Investment Group, focusing on turnaround and value-creation investment opportunities, launched in 2023 after seeing how the Covid-19 pandemic reshaped the sector, according to President Lynn Jerath. In that time, Citrine closed on over $150 million in assets under management as of August of 2025.
Expectations between buyers and sellers are “more in alignment” and returns on successful senior living properties are “more attractive” compared to other real estate classes, Jerath said. Past missteps from the industry’s sorted M&A history came from over-leveraging, ineffective management or misjudging an operator’s ability to stabilize a property—all steps Citrine and other new investment firms must heed, Jerath added.
“We prioritize putting the best team in place, underwriting conservatively, capitalizing each investment properly, and taking a hands-on approach to investment management,” Jerath added. “Each property we acquire must have a path to operational improvement and community uplift.”
In July of 2025, Chicago-based The Kiser Group launched a new senior housing brokerage business, led by longtime senior living financial services expert Mark Myers. Occupancy and rate growth seen since 2022 gave the Kiser Group the confidence to expand financial services in senior living, Myers told SHN, noting that favorable buyer-seller expectations are pushing deals across the finish line.
“Many times, buyers surprise us and pay more than we thought achievable,” Myers said of activity witnessed in 2025.
Leaving other real estate sectors behind for senior living investment
In the past senior living investment has often been eclipsed by other sectors, including multifamily real estate. But some multifamily investors are turning to senior living opportunities in 2025 and this year.
Praxis Capital, led by CEO Brian Burke, sold its multifamily portfolio and entered senior living M&A in 2025 based on strong market fundamentals and demographic trends. Praxis Capital also formed a joint venture with Stacked Stone Ventures and President Kent Eikanas to create Praxis Healthcare. In 2025, the joint venture closed on over $100 million in transactions and formed new operator relationships.
“We’ve got an entire asset class trading at what feels like decade lows,” Burke told SHN. “When you put all the pieces together, it makes a really compelling time to invest in senior housing.”
Finding the right senior living operator to partner with is critical, multiple firms interviewed for this story said, noting that operators must align values and expectations with capital providers to reduce friction if challenges arise. Partnering with Eikanas helped bring new relationships into the fold, Burke added.
New capital must be “very thoughtful” in their approach for entering senior living, Burke said, noting that throwing capital around without understanding the sector can “tarnish the reputation of the industry,” urging new groups to consider forming partnerships or hiring existing financial experts in the space to grow their capabilities.
From institutional shops expanding offerings to new groups jumping into fray, new senior living investors must remain grounded in what types of transactions they seek and maintain the right relationships that best fit their needs, according to Ikaria Capital co-founder Jason Dopoulos. In early 2025, Dopoulos and other veteran financier Ken Gould formed Ikaria offering a suite of financial services to meet incoming appetite for capital allocation.
While conditions are favorable, Dopoulos urged caution from new groups, calling for “underwriting discipline” that will protect the sector in the near future.
2026: The year of opportunity as discipline still needed
Several experts interviewed by SHN said they anticipate faster, more competitive market conditions in 2026 as 2025 built momentum and an influx of new capital entered the space. This year, Swartz anticipates “more aggressive pricing” as development efforts remain muted.
“We’re starting to hit some keystone deals that are at or in excess of replacement costs,” Swartz added.
But conditions in 2026 could be shaped by owner-operator relationships, and the need for greater alignment in values, timelines for potential sale and financial reporting requirements.
“The demographic and supply-demand trends we saw in 2025 will only accelerate in 2026 as the first baby boomers turn 80. The ‘wave’ has arrived, and we will remain disciplined in our strategy,” Cobb said.
The year ahead will reward groups that can bring repeatable execution, capital discipline, operator alignment and a platform that can solve multifaceted capital needs, experts told SHN.
“We anticipate increased deal flow and a greater emphasis on quality of resident experience,” Jerath said. “We are looking to grow substantially in 2026 with opportunistic acquisitions, operational turnarounds and partnerships that elevate both financial performance and standards of care.”
