The long-term care market is on a tear. But some factors, including high interest rates, could work to slow down the growth, according to financiers.

Rising long-term rates could negatively affect financing, according to participants who spoke on a recent conference call held by the National Investment Center for the Seniors Housing & Care Industry. Five lenders and investors spoke during the call. The obsolescence of buildings could also affect future financing decisions. Finding and retaining top managers is another concern.

But a review of the first half of 2006 indicates that senior housing is at the moment a “hot” market, they said. The environment is competitive and new capital providers are entering the market. Also, institutional equity and pension funds are also increasingly investing in the sector.