News & Press Releases
Seniors Housing Occupancy Rises, Rent Growth Remains Stable, and Construction Activity Moderates Slightly in the 4th Quarter
FOR IMMEDIATE RELEASE: Friday, January 10, 2014
Contact: Biba Aidoo, (410) 267-0504 or baidoo@nic.org
NIC MAP® Data Shows occupancy up 2.8 percentage points above its cyclical low
ANNAPOLIS, Md. – Overall, the average occupancy rate for seniors housing properties in the fourth quarter of 2013 was 89.7%, an increase of 0.4 percentage points from the prior quarter and a 0.7 percentage point increase from a year earlier. As of the fourth quarter of 2013, occupancy was 2.8 percentage points above its cyclical low of 86.9% during the first quarter of 2010.
The occupancy rate for independent living properties and assisted living properties averaged 90.0% and 89.2%, respectively, during the fourth quarter of 2013. When compared to the prior quarter, independent living occupancy increased by 0.5 percentage points, while assisted living occupancy increased by 0.1 percentage points. The occupancy rate for independent living is now 3.2 percentage points above its cyclical low, while the occupancy of assisted living is 2.5 percentage points above its respective cyclical low.
During the fourth quarter of 2013, the rate of seniors housing’s annual asking rent growth was unchanged at 1.6%, and was 0.5 percentage points below its pace one year earlier during the fourth quarter of 2012.
“While seniors housing rent growth overall remained stable during the quarter, rent growth for independent living strengthened, while assisted living rent growth slowed,” says Chuck Harry, NIC’s managing director and director of research and analytics. ”Annual rent growth in independent living properties accelerated by 20 basis points, while the pace of annual rent growth in assisted living properties slowed by 30 basis points.”
Seniors housing annual absorption was 2.2% as of the fourth quarter of 2013, compared to 2.0% during the third quarter of 2013 and 2.3% during the fourth quarter of 2012.
In the fourth quarter of 2013, the seniors housing annual inventory growth rate was 1.4%, which is near where it has oscillated since the fourth quarter of 2011. Currentconstruction as a share of existing inventory for seniors housing was 2.9%, which is 0.3 percentage points below that of the previous quarter.
“While construction activity during the fourth quarter moderated slightly, in part due to a modest decline in the construction starts, it is far too soon to say if this is a trend or a one-quarter aberration,” says Harry.
The nursing care occupancy rate was 87.9% in the fourth quarter of 2013, an increase of 0.3 percentage points from the third quarter of 2013.
Nursing care annual inventory growth was -0.1% in the fourth quarter of 2013, continuing the established trend of slightly declining inventory growth. Private pay rents for the sector grew 2.9% year-over-year this quarter, which is 0.1 percentage points above the pace of the prior quarter.
About NIC
The National Investment Center for the Seniors Housing & Care Industry (NIC) is a 501(c)(3) organization whose mission is to facilitate informed investment in the industry. NIC’s NIC MAP® Data and Analysis Service tracks more than 12,600 properties on a quarterly basis in the 100 largest metropolitan markets. Proceeds from NIC’s national conference and other events are used to fund data and research on issues of importance to lenders, investors, providers, developers, and others interested in meeting the housing and care needs of America’s seniors. For more information, visit www.NIC.org or call (410) 267-0504.