After five consecutive years of record prices, the average price per bed for skilled nursing facilities fell to $81,350 in 2017, a drop of 18% from the year prior.

It might have fallen even further if the average cap rate in 2017 had not remained at historical norms, according to a press release from Norwalk, Connecticut-based market intelligence firm Irving Levin.

The average cap rate for 2017 was 12.3%, or 10 basis points higher than that of 2016.

“Despite all the headwinds facing skilled nursing providers and owners, the average price last year was the third highest on record,” Stephen Monroe, editor of The Senior Care Acquisition Report, said in the release. “But given the problems facing the sector, we do not see an improvement in 2018.”

Those problems include low reimbursement rates, thin margins, plunging occupancy, heavy regulation and labor challenges.

Assisted living fared much better; the average price per unit paid rose by 14% to $221,250 per unit in 2017. The market for communities with a majority of independent living units also rose in value, with the average price per unit for independent living communities rising by 1% to $230,100 per unit.

The number of publicly announced transactions in seniors housing and care fell for the second consecutive year, from 338 in 2016 to 302 in 2017. But the value of the transactions rose from $14.5 billion in 2016 to $15.9 billion in 2017, marking the fifth-highest value ever, according to the press release.

The findings on per-bed prices echo those from the National Investment Center for Seniors Housing and Care (NIC), which found a drop of 1% in pricing between the third and fourth quarters of 2017.

Written by Maggie Flynn