Investors are flocking to senior housing assets as baby boomers age, with many turning to the sector to boost their portfolio performance this year.

That is according to CBRE’s U.S. Senior Housing & Care Investor Survey, which said almost 60% of respondents plan to increase their portfolio size with senior housing and care assets this year, up from last year's 47%. Despite rising interest rates, roughly 52% of those surveyed expect cap rates to remain stable this year.

Investors are growing increasingly fond of value-add opportunities, the survey revealed, and are flocking to Class-C assets. Respondents identified independent living as the sector’s largest investment opportunity.

Despite investor's piqued interest in the sector, the report highlighted three factors that could negatively impact the sector in the coming 12 months, including robust construction activity and property-level operation. The second-biggest worry was rising interest rates. The Federal Reserve is expected to raise rates in June to between 1% and 1.25%, and experts predict officials will move rates at least once more this year.