Press Room – 2009 NIC Press Releases
NIC/ASHA Announce Release of ‘2009 Seniors Housing Construction Trends Report’
Report Analyzes Construction Activity in the Nation’s Top 100 Markets
FOR IMMEDIATE RELEASE: September 24, 2009
Contact: Renee Tilton, (410) 626-0805 or rtilton@crosbymarketing.com
Annapolis, Md. – The latest edition of the most respected report on construction activity in seniors housing and care is now available, as announced today by its co-authors: the National Investment Center for the Seniors Housing & Care Industry (NIC) and the American Seniors Housing Association (ASHA). The “2009 NIC/ASHA Seniors Housing Construction Trends Report” shows properties under construction as of March 2009 in the nation’s top 100 metropolitan markets. Property types include senior apartments, independent living, assisted living, nursing care and continuing care retirement communities (CCRCs).
“Key findings from this year’s report include the extent to which construction activity has slowed due to the lack of financing available for developers and the continued pressures from the overall economic recession,” said Michael Hargrave, vice president – NIC MAP. “For the year ending March 31, 2009, total units started in the previous 12 months were down 37% compared to the same time period a year earlier and down 45% compared to two years ago.”
“This year’s report also provides some valuable insights into the construction activity for CCRC properties,” said David Schless, president of ASHA. “While there were expansions to existing campuses that continued to take place, only a handful of brand new CCRCs started construction in the past year. The markets that have traditionally embraced the CCRC model are markets that continue to have the most activity, such as Boston and Chicago.”
“This report is invaluable to seniors housing and care decision-makers, because it provides a comprehensive overview of nationwide construction activity based on verified counts,” said Robert G. Kramer, president of NIC. “The report analyzes data drawn from the nation’s 100 largest metro markets, which contain approximately 66% of the total U.S. population.”
The report is based on data provided from the NIC MAP® Data and Analysis Service, which summarizes and verifies data gathered from multiple sources, including McGraw-Hill Construction. “Our NIC MAP database was an important tool in that it provides detailed project-level information on a quarterly basis,” said Hargrave.
Information in the report shows total units under construction in the 100 largest metropolitan areas, the number of units started in the past year, the distribution of units under construction by property type, the current supply of age-restricted seniors housing, the ten markets with the greatest number of units under construction by property type, and the same top ten markets with the largest number of new properties opened in the last five years.
The report also includes a ranking of the top 100 metro markets by the number of CCRCs under construction and an analysis of each seniors housing and care property type.
Another significant feature of the report is a section detailing the growth in seniors housing and care from 1985 through 2008. “Relative to historical growth, the data shows that the amount of construction activity since 2000 has been modest compared to that which the industry experienced in the 1980s and 1990s,” said Kramer. “Investors and developers can use this information to gauge construction trends when planning their development strategies.” In addition to aggregate numbers, trend lines are also provided by property type.
The “2009 NIC/ASHA Seniors Housing Construction Trends Report” is available for $150. For more information, visit www.NIC.org or www.seniorshousing.org. Or, call NIC at (410) 267-0504 or ASHA at (202) 237-0900.
About NIC
Founded in 1991, the National Investment Center for the Seniors Housing & Care Industry is a nonprofit education and research organization providing information about business strategy and capital formation for the senior living industry. NIC is the leading provider of historical and trend data on the industry through its NIC MAP® Data and Analysis Service that tracks properties in the 100 largest metropolitan areas and its Key Financial Indicators™ (KFIs) that report nationwide statistics. Proceeds from its annual conference and other events are used to fund data and research on issues of importance to lenders, investors, developers, operators, 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.
About ASHA
The American Seniors Housing Association (ASHA) was created in 1991 by a number of leading seniors housing providers seeking an effective voice on Capitol Hill. Today, ASHA’s membership has grown to 350 companies that develop, operate and finance the entire spectrum of seniors housing. ASHA’s membership owns and/or manages more than 600,000 units of senior apartments, independent living, assisted living and continuing care retirement communities. Over the years, ASHA’s members have come to rely on the Association for its expertise in three key areas – federal advocacy, seniors housing research, and networking and exchange of strategic business information. For more information, visitwww.seniorshousing.org or call (202) 237-0900.