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Seniors Housing Actual Rates Report Shows Larger Discounts for Assisted Living than Independent Living

The NIC Map Data Service recently released national benchmark data through mid-year 2017 for actual rates and leasing velocity.  Key takeaways include:

  • Average initial rates were below average asking rates for both independent living and assisted living properties, with monthly spreads larger for assisted living properties throughout the entire reported period.
  • As of June 2017, assisted living initial rates averaged 8.8% below the average asking rate, which equates on an annualized basis to an average initial rate discount equivalent to nearly 1.1 months, down from 1.3 months in December 2016. The discount for independent living was smaller at the equivalent of 0.7 month’s rent.
  • Growth rates for average initial rates for independent living properties have been decelerating in recent months, and in June, were 1.2% above year-earlier levels. This compares to a 0.5% increase in average asking rates and 3.3% increase for in-place rates for independent living. Average initial rates for assisted living were 1.1% above year-earlier levels, while asking rates were 2.2% above year-earlier rates and in-place rates were up by 2.7%.
  • Average in-place rates exceeded average initial rates for assisted living in every month of the past two years, and were 7.1% higher on average in June. In-place rates were also higher on average for independent living properties, and were 6.2% higher on average in June.
  • Resident turn-over is accelerating in independent living properties. Move-outs for independent living and have exceeded move-ins for four of the past six months. This is more than the year-earlier pace of only one month in the first six months of 2016. For assisted living, move-outs exceeded move-ins for three of first six months of 2017, versus two for the first six months of 2016.

The NIC MAP Seniors Housing Actual Rates Report provides national data from approximately 250,000 units within more than 2,500 properties across the U.S. operated by 20 to 25 seniors housing providers. This monthly time series is comprised on end-of-month data for each respective month.