FOR IMMEDIATE RELEASE:
Friday, April 12, 2013
Contact: Biba Aidoo, (410) 267-0504 or firstname.lastname@example.org
SENIORS HOUSING OCCUPANCY REMAINS UNCHANGED AT 89.1%
NIC MAP® Data Shows Slower Absorption, Continued Rent Growth, and Increased Construction Activity
Q1 2013 Data Release Presentation
Download an abridged version of the full NIC Q1 2013 Data Release presentation.
ANNAPOLIS, Md. – The seniors housing occupancy rate remained essentially flat during the first quarter
of 2013, while the pace of annual rent growth accelerated slightly and overall construction activity
rose, according to NIC MAP®, a data and analysis service of the National Investment Center for the Seniors
Housing & Care Industry (NIC).
Overall, the average occupancy rate
for seniors housing properties in the first quarter
of 2013 was 89.1%, unchanged from the prior quarter and a 0.8 percentage point increase from a year
earlier. The first quarter of 2013 marked the first time since the second quarter of 2010 that the seniors
housing average occupancy rate failed to rise. While the recovery in occupancy stalled, it remains 2.2
percentage points above its cyclical low of 86.9% during the first quarter of 2010.
The occupancy rate for independent living properties and assisted living properties averaged 89.3% and
88.8%, respectively, during the first quarter of 2013. Compared to the prior quarter, independent living
occupancy rose by 0.2 percentage points, while assisted living occupancy declined by 0.2 percentage
points. The occupancy rate for independent living is now 2.5 percentage points above its cyclical low,
while the occupancy of assisted living is 1.9 percentage points above its respective cyclical low. “We
had been seeing independent and assisted living occupancies moving in tandem during the past year. Going
forward, we may begin to see a divergence, as inventory growth headwinds have been developing for assisted
living, while construction in independent living remains comparatively tempered,” says Mike Hargrave,
NIC’s chief market & data strategist.
During the first quarter of 2013, seniors housing’s annual asking rent growth
to 2.3%, and was 0.9 percentage points above its pace one year earlier during the first quarter of 2012.
“While seniors housing rent growth overall accelerated, its acceleration was driven by assisted living
properties. Annual rent growth in assisted living properties accelerated 40 basis points, while the
pace of annual rent growth in independent living properties remained essentially flat,” says Chuck Harry,
NIC’s managing director and director of research and analytics.
Seniors housing annual absorption
was 2.1% as of the first quarter of 2013, compared
to 2.3% during the fourth quarter of 2012 and 2.2% during the first quarter of 2012. “While the pace
of annual absorption continues to outpace that of annual inventory growth, the delta compressed this
quarter as absorption slowed. Based on the construction pipeline, inventory growth will likely begin
to accelerate modestly in the near-term, which may cause the delta to compress yet further,” says Harry.
In the first quarter of 2013, the seniors housing annual inventory growth
1.2%, which is near where it has oscillated since the fourth quarter of 2011. Current construction
as a share of existing inventory
for seniors housing was 2.5%, which is 0.2 percentage
points above that of the previous quarter.
The nursing care occupancy rate
was 88.0% in the first quarter of 2013, which is a
decrease of 0.1 percentage points from the fourth quarter of 2012.
Nursing care annual inventory growth
was -0.2% in the first quarter of 2013, continuing
the established trend of slightly declining inventory growth. Private pay rents
the sector grew 2.8% year-over-year this quarter, which is unchanged from the pace reported in the fourth
quarter of 2012.
The National Investment Center for the Seniors Housing & Care Industry (NIC) is a 501(c)(3) organization
whose mission is to facilitate informed investment in the seniors housing and care industry. NIC's NIC
MAP® Data and Analysis Service tracks more than 12,600 properties on a quarterly basis in the 100 largest
metropolitan markets. Proceeds from its national conference and other events are used to fund data and
research on issues of importance to lenders, investors, providers, developers, and others interested
in meeting the housing and care needs of America's seniors. For more information, visit
or call (410) 267-0504.
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