This Vietnam vet, 84, was forced to sell her ‘dream’ retirement home after new owners jacked up monthly costs from $1,395 to $6,500 — how she lost out on $100,000 and a warning to seniors

Private equity’s invasion

Factors that make seniors living facilities valuable to many families also make them attractive to investors. Elevated rents, recurring revenue and the nation’s aging population has made this a lucrative asset class for private equity firms.

According to the American Seniors Housing Association’s (ASHA) annual report on the industry, eight of the 50 largest operators in the U.S. senior housing space were private equity firms in 2024. And at least three had partnerships with real estate investment trusts (REITs).

Private equity’s influence could expand further in the years ahead. A survey of seniors housing trends by global real estate investment firm JLL, showed that 78% of institutional investors planned to expand their investments in senior care facilities. “Opportunities exist for investors to acquire high-quality real estate at below replacement cost,” says the 2025 report.

The impact of private equity ownership on residents of these facilities can be “significant and troubling,” according to the Center for Medicare Advocacy.

According to their analysis, properties taken over by one private equity firm in Iowa received lower overall and health inspection ratings, had fewer nursing staff, faced more abuse citations, incurred higher federal civil monetary penalties, and experienced more payment denials for new admissions

Put simply, some investment firms may be incentivized to put profits and shareholder returns above the interests of vulnerable seniors. If you or your loved ones live in such facilities or are considering moving in, you should take some steps to protect yourself.

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Protect yourself and your loved ones

There are several ways you and your family can reduce the risk of financial damages from seniors living arrangements.

Before you sign up, make sure you review the contract carefully and consider having the terms reviewed by an experienced lawyer. You should also try to find out which entity owns the property you or a loved one is considering.

There are minimal disclosure requirements for senior living property transactions, so it’s not easy to find out if a facility is owned by a private equity firm, but the Centers for Medicare & Medicaid Services (CMS) offers some limited information on its website about “affiliated entity performance” that could be helpful.

The CMS is also advocating for tighter regulations and more disclosures to bring transparency to the industry and help consumers find out who owns the properties they or their loved ones live in.

Last year, Democratic Senators Ed Markey and Elizabeth Warren introduced the Corporate Crimes Against Health Care Act, which aims to “root out corporate greed and private equity abuse in the health care system.”

If you believe the industry needs greater transparency and tighter protections, reach out to your local representative to encourage them to support the bill as it makes its way through Congress.