The prices paid for nursing homes and retirement housing units hit record levels in 1996, according to The Senior Care Acquisition Report prepared by Irving Levin Associates.
The New Canaan, Conn.-based financial services firm found that for the fifth year in a row, the average price paid for nursing homes has increased to a record $42,300 per bed. The new price represents an 8% increase over 1995's record average price
"Most buyers are targeting the higher-quality facilities, and this is driving the market," said Stephen Monroe, a Levin partner.
The combined market for assisted- and independent-living facilities also saw record prices, with an average of $66,000 per unit, compared with $54,000 per unit in 1995.
"I think it's safe to say that the market has peaked," Monroe said.