For the second consecutive quarter of 2015, occupancy rates have decreased for senor living properties, with an average occupancy rate of 89.9 percent, according to the National Investment Center for Seniors Housing & Care (NIC). During the second quarter occupancy rates averaged 91 percent in independent living and assisted living occupancy rates averaged 88.4 percent. While there was a 0.3 decrease compared to second quarter 2014, independent living outpaced assisted living 0.5 percentage points higher compared to assisted living.
While current construction is down from the previous quarter, seniors housing annual inventory growth rate rose to 1.9 percent from first quarter.
“The quarter’s inventory growth of more than 3,600 units represents the highest number of seniors housing units coming online during any quarter of the past six years—dating back to mid-2009, which was near the end of the sector’s last construction cycle,” says NIC’s Managing Director and Director of Research and Analytics Chuck Harry, in a release.
Nursing care occupancy rates saw a decrease of 0.6 percentage points (87.9 percent) in the second quarter. Private-pay rents for this sector have increased 2.5 percent since second quarter 2014.