Nursing homes are making a comeback in the market, according to a key organization that tracks financial activity in seniors housing.

Loan volume in skilled nursing in the third quarter of last year rose almost 200% year-over-year, according to the National Investment Center for the Seniors Housing & Care Industry. Institutional investors are more interested in investing in the nursing sector compared to a year ago, noted Anthony J. Mullen, NIC research director for NIC. More people want to invest in renovations of existing nursing homes, a trend that is likely to gain pace over the next five years, an NIC release said.

Loan volume for the whole seniors housing and care industry for the third quarter of 2006 was $1.64 billion, an increase of 135% compared to the third quarter of 2005. Also, loan performance reached their highest cumulative point to date. Median occupancy rates for seniors housing improved year over year as well.