New housing construction cools, memory care still hot
New construction plans have cooled slightly compared to last year, but memory care construction and repositioning are still booming, according to the 2015 Seniors Housing and Care Survey published by Lancaster Pollard.
Although 51 percent of survey respondents indicated they would pursue a new construction project in 2016, it represents a 13 percent drop since last year.
Among respondents, more than half said they planned to change their service mix in the next 12 months to reposition themselves in the market. Nearly 70 percent said they were extremely likely or somewhat likely to take on a renovation project in 2016. Many organizations (53 percent) say they plan to pursue an acquisition.
Expectations for 2016 include plenty of growth and project activity in assisted living, especially housing related to memory care. Skilled nursing and continuing care retirement communities are expected to see the least growth, according to survey respondents.
The number of seniors housing site participating in an accountable care organization (ACO) has risen dramatically in the past year. Now, 25 percent of those surveyed are part of an ACO, compared to just 9 percent in 2014.
The data on occupancy rates is also encouraging—while some responding organizations are struggling with censuses in the 70th and 80th percentile, the majority maintain rates of 90 percent or higher, with nearly 16 percent reporting occupancy rates of 95 percent.
Pamela Tabar was editor-in-chief of I Advance Senior Care from 2013-2018. She has worked as a writer and editor for healthcare business media since 1998, including as News Editor of Healthcare Informatics. She has a master’s degree in journalism from Kent State University and a master’s degree in English from the University of York, England.