This past year was epic for dealmaking in the long-term care sector, as average prices for skilled nursing beds fell year over year.

In 2024, a lot of distressed properties – especially in the senior housing sector – were up for sale as well.

Overall, transaction volume reached a pinnacle with 708 publicly announced transactions compared to 518 such deals in 2023, posting a 37% year-over-year jump in 2024, according to data released Wednesday by Irving Levin Associates.

This increase in merger and acquisitions activity was seen despite a backdrop of a choppy operating recovery, high inflation and costs, and a challenging capital markets environment.

Skilled nursing facilities saw an average decrease in bed prices. Prices continued to fall from their record levels in 2022 to $97,700 per bed in 2023 and to $83,800 per bed in 2024.

For the seniors housing market, the average price per unit for assisted living communities rose by 11% year over year to $160,900 per unit in 2024. And, the independent living sector posted a 7% decline in average price to $183,000 per unit in 2024.

Improvements in capital markets and seniors housing operating environments led to record M&A transactions in 2024 for the sector, with more high-quality asset deals in the fourth quarter driving up prices, a trend expected to continue in 2025.

These trends are mirrored in remarks made by executives at several publicly traded nursing home organizations and real estate investment trusts (REIT) with skilled nursing and other long-term care facilities in their portfolios.

Some organizations in the space are holding off on adding more skilled nursing facilities (SNF) at this time.

National Healthcare Investors (NYSE: NHI), for example, remains interested in growing its skilled nursing exposure, but is taking a disciplined approach, Chief Investment Officer Kevin Pascoe said during NHI’s fourth quarter earnings call.

“We’re absolutely looking [for SNF deals]. It’s just a matter of getting an opportunity at the right price with the right operator,” he said, adding that the market for SNFs has been “pretty frothy” from a pricing perspective, with a lot of distressed properties available.

The Irving Levin’s Senior Care Acquisition Report provides data derived from both public and confidential sources.