Boston, Baltimore, and Tampa record highest occupancy rates; Atlanta, Houston and Las Vegas have lowest rates—but improved from 3Q24
Annapolis, Md. (January 16, 2025) — Senior housing occupancy rates in the United States increased 0.7 percentage points, from 86.5% occupied in the third quarter of 2024 to 87.2% in the fourth quarter, according to the National Investment Center for Seniors Housing & Care (NIC), using data from NIC MAP Vision. The senior housing occupancy rate for the 31 Primary Markets surpassed pre-pandemic occupancy levels in the fourth quarter, as predicted by NIC.
“Older adults are turning to senior housing in record numbers, and we anticipate that trend will continue as our population ages and requires specialized housing and care,” said NIC’s Senior Principal Caroline Clapp. “Given the current supply and demand trends, we forecast that occupancy levels will surpass 90% by the end of 2026, which has only happened a handful of other times since NIC MAP Vision began tracking the data.”
The fourth quarter of 2024 set a record high for the number of occupied senior housing units, with more than 618,000 units occupied compared to roughly 611,000 in the third quarter.
NIC experts say that although demand is surging, the supply of senior housing properties is not growing at an equal rate. There were fewer than 22,000 senior housing units under construction in the fourth quarter, which was the lowest level since the first quarter of 2014. For all of 2024, just under 8,800 units of inventory were added across primary markets, which is only slightly higher than the total number added in 2023 — signaling that construction activity remains lower than historical averages.
“New construction deals are difficult to pencil today because of the volatility of the cost of capital, changes in what the consumer is willing to pay, and skyrocketing development costs,” said Arick Morton, CEO of NIC MAP Vision. “First and foremost, we need to see meaningful improvement in the access to capital for new construction before we will see the needle move on development activity, which is sorely needed to meet the growing demand.”
The three markets with the highest and lowest occupancy rates remained unchanged from previous quarters. Boston (91.0%), Baltimore (89.9%), and Tampa (89.8%) once again had the highest occupancy rates of the 31 NIC MAP Primary Markets, while Atlanta (83.9%), Houston (83.5%), and Las Vegas (82.9%) recorded the lowest. Occupancy rates for other primary and secondary markets are available upon request.
A summary of the NIC MAP Market Fundamentals Data, by NIC MAP Vision, is below. An abridged report featuring the newly released data will be available at 4:30 p.m. ET on Thursday, Jan. 16. While the report is a complimentary resource, only NIC MAP Vision clients have exclusive access to the underlying data and additional metrics at the metro level.
About the National Investment Center for Seniors Housing & Care
The National Investment Center for Seniors Housing & Care (NIC), a 501(c)(3) organization, works to enable access and choice by providing data, analytics, and connections that bring together investors and providers. The organization delivers the most trusted, objective, and timely insights and implications derived from its analytics, which benefit from NIC’s affiliation with NIC MAP Vision, the leading provider of comprehensive market data for senior housing and skilled nursing properties. NIC events, which include the industry’s premiere conferences, provide sector stakeholders with opportunities to convene, network, and drive thought-leadership through high-quality educational programming. For more information, visit NIC’s website and follow NIC on LinkedIn, Facebook, and Instagram.
About NIC MAP Vision
NIC MAP Vision maximizes access, choice, and quality in senior housing by providing data, analytics, and services to industry stakeholders and partners. We are the only intelligence provider exclusively dedicated to senior housing. As the industry’s gold standard for market analytics data, we are trusted by the largest government agencies, 18 of the 20 largest senior housing operators, and most of the largest investors and owners. Every day, thousands of industry professionals use our data platform and proprietary tools to make smarter decisions about where to grow, how to grow, and how to bring a strategy to life. For more information, visit https://www.nicmapvision.com/