The U.S. is aging, and the places where older Americans live have become one of the busiest corners of real estate. Senior housing includes independent living, assisted living, and memory care communities, where residents pay monthly for a home plus meals, daily help, or specialized care. This year, the oldest baby boomers began turning 80, an age when demand for that kind of support climbs.
New supply has not kept pace. Occupancy in the 31 largest markets tracked by NIC MAP reached 89.9% in the second quarter of 2026. Inventory grew only 0.4% from a year earlier, and fewer than 16,000 units were under construction. Across the top 99 metros, occupancy hit 90.1%, the highest since late 2007.
Much of this housing is owned by real estate investment trusts, or REITs. A REIT owns income-producing property and pays most of its taxable income to shareholders as dividends. In senior housing, many REITs now prefer a model called a senior housing operating portfolio, or SHOP. Rather than collect fixed rent from a tenant, the REIT hires a manager and keeps the property’s operating profit. Rising occupancy and rents flow straight to the owner, and so does the pain when costs jump or rooms sit empty.
The biggest names have leaned in. Welltower Inc. (NYSE: WELL), the largest healthcare REIT, and Ventas, Inc. (NYSE: VTR) reported second quarter same-store SHOP income growth of 20.5% and 16.3%. Ventas also doubled its 2026 investment target to $4.5 billion, aimed at senior housing. Nearly every major senior living REIT has said it plans to expand its SHOP business this year. Record occupancy, thin new supply, and double-digit profit growth explain why senior housing now stands out as the hottest segment of healthcare real estate.
A much smaller REIT has now bet its future on the same trend. National Healthcare Properties, Inc. (NASDAQ: NHP) announced a definitive agreement to sell 40 outpatient medical facilities, essentially buildings leased to doctors and clinics, for about $531 million. It expects roughly $511 million in cash before transaction costs, with closing targeted for the fourth quarter.
This sale is the second big step in a planned exit. NHP had already agreed to sell 86 outpatient facilities for about $528 million, and 30 of those closed on September 10th. A non-binding letter of intent covers the last four buildings for $11 million. Once all three deals close, the company will own senior housing and nothing else.
The scale is striking. NHP’s market value is roughly $1.2 billion, so the latest sale alone equals about 45% of the company. Taken together, the outpatient sales total more than $1 billion, close to 90% of that figure. For shareholders, that is a nearly complete change in what they own.
The cash will pay off the company’s revolving credit line and fund new purchases. NHP has signed agreements or letters of intent for about $244 million of senior housing, covering 724 units, mostly assisted living and memory care. It projects cap rates of about 7.2% in the first year and 8.4% by year three. A cap rate is annual operating income divided by purchase price, so NHP is selling buildings at a 6.9% yield and buying ones it expects to earn more. Those purchases still depend on due diligence and regulatory approvals.
The balance sheet change is just as notable. NHP expects net debt to adjusted EBITDA, a common measure of leverage, to fall to about 0x based on second quarter financials. Net debt subtracts cash from borrowings, and the company would still owe about $300 million in unsecured term loans. The difference is that it would hold roughly the same amount in cash, giving it room to buy without borrowing heavily.
What comes next depends on execution. Running senior housing directly exposes NHP to labor costs and occupancy swings, and it will compete for deals against far larger rivals. Still, if industry trends hold, the company starts its next chapter with a single focus, plenty of cash, and a market where demand keeps outrunning supply.
