FOR IMMEDIATE RELEASE:
Friday, April 11, 2014
Contact: Biba Aidoo, (410) 267-0504 or firstname.lastname@example.org
Seniors Housing Posts Slight Gain in Occupancy in 1st Quarter While Rent Growth Remains Stable and Construction Pace Slows
NIC MAP® Data Shows Annual Inventory Growth Still Tempered
Q1 2014 Data Release Presentation
Download an abridged version of the full NIC Q1 2014 Data Release presentation
ANNAPOLIS, Md. – Overall, the average occupancy rate
for seniors housing properties in the first quarter of 2014
was 89.8%, an increase of 0.1 percentage points from the prior quarter and a 0.8
percentage point increase from a year earlier. As of the first quarter of 2014, occupancy was 2.9 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 90.2% and 89.1%, respectively, during the first quarter of 2014. When compared to the prior quarter, independent living
occupancy increased by 0.2 percentage points, while assisted living occupancy decreased by 0.1 percentage points. The occupancy rate for independent living is now 3.4 percentage points above its cyclical low, while
the occupancy of assisted living is 2.4 percentage points above its respective cyclical low.
During the first quarter of 2014, the rate of seniors housing’s annual asking rent growth
was unchanged at 1.6%, and was 0.7 percentage points below its pace one year earlier during the first quarter of
“At 2.1%, annual asking rent growth for assisted living was stronger than for independent living at 1.4%,” says Beth Mace, NIC’s chief economist. She noted that ”rent growth for both sectors exceeded the estimated
increase in costs for wages and food, two significant contributors to expense growth for the seniors housing sector.”
Seniors housing annual absorption
was 2.2% as of the first quarter of 2014, compared to 2.2% during the fourth quarter of 2013 and 2.1% during the first quarter of 2013.
In the first quarter of 2014, the seniors housing annual inventory growth
rate was 1.4%, which is near where it has oscillated since the fourth quarter of 2011. Current construction as a share of existing
for seniors housing was 3.1%, which is 0.1 percentage points below that of the previous quarter.
“The recent moderating pace of seniors housing’s overall current construction levels is primarily the result of moderating construction starts in assisted living properties,” says Chuck Harry, NIC’s managing
director and director of research and analytics. “In fact, 2014’s first quarter recorded the lowest number of units starting construction within assisted living properties of any quarter during the past
four-and-a-half years. Weather may have been a contributing factor, however.”
The nursing care occupancy rate
was 88.4% in the first quarter of 2014, an increase of 0.4 percentage points from the fourth quarter of 2013.
Nursing care annual inventory growth was -0.1% in the first quarter of 2014, continuing the established trend of slightly declining inventory growth. Nursing care annual absorption was 0.3% in the first quarter
of 2014, which was the first positive gain in nursing care absorption since NIC MAP initiated coverage in the fourth quarter of 2005. Private pay rents
for the sector grew 2.8% year-over-year this quarter,
which is 0.1 percentage points below the pace of the prior quarter.
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.
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