NIC Research & Data
NIC MAP® Market Signals
2Q10 Market Signal: Why Things Are Beginning to Turn
Subscribers to NIC MAP learned on July 27 that seniors housing occupancy rates in 2Q10 rose for just
the second time in the past 13 quarters. At 87.7%, the occupancy rate was up 10 bps from 1Q10 but down
20 bps from one year ago.
While the occupancy rate is still very near its cyclical bottom, there are reasons to believe occupancy
rates may have less downside risk than just a few quarters ago. One such reason is that many metros
appear to be in clear recovery. In fact, 15 of the MAP31 metros recorded an annual occupancy increase
in 2Q10. This is the largest such number since 1Q07, when 17 metros recorded an annual occupancy increase.
One such market exhibiting this trend is Riverside, CA. The 2Q10 seniors housing occupancy rate in Riverside
was 87.3%, which was up 40 bps from 1Q10 and an eye opening 220 bps from 2Q09. In fact, the 2Q10 occupancy
rate in Riverside is the highest recorded since 3Q07, when it was 88.8%.
Each quarter, NIC MAP reports market level occupancy, rent growth and construction trends in each of
the 100 largest metro markets. To incorporate NIC MAP data in your analysis please visit
www.nicmap.org.
|
|