NIC: Seniors housing seems strong for 2016
Fourth quarter 2015 tallies showed the occupancy rates are recovering from earlier in the year, and the absorption rates are keeping pace with construction so far, according to Q4 data from the National Investment Center for Seniors Housing & Care (NIC).
For the past five years, nearly two-thirds of the overall senior housing growth has been in assisted living. Construction rates for assisted living reached nearly 8 percent, an all-time high for the sector.
"The combination of a strong economy, strong job growth, favorable consumer confidence and an improving consumer market will have favorable demand for senior housing in 2016," said Beth Mace, chief economist and director of capital markets outreach for NIC, during a press briefing.
However, developers should be wary of overbuilding, especially regionally or in metropolitan markets with a large footprint in assisted living units, Mace warned.
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.