Development Challenges, High Demand Keep Senior Living M&A in the Spotlight in 2026

Sustained demand for senior living and development constraints are setting up increased transaction velocity for the remainder of this year. That’s according to the new Marcus and Millichap 1H2026 report, released last week. The shortage of new senior living development projects is not new, but the report’s authors note that financing and labor pressures continue to “weigh on development,” with the pipeline for new projects continuing to shrink in 2026. This has been driven by construction material costs continuing to rise, peaking in March 2026, while the U.S.-Iran war diminished the chances of a U.S. Federal Reserve interest rate cut.

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Source: https://seniorhousingnews.com/2026/05/26/development-challenges-high-demand-keep-senior-living-ma-in-the-spotlight-in-2026/

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