NIC Research & Data
NIC MAP® Market Signals
4Q10 Market Signal: Higher Occupancy Means More Pricing Power!
Research by NIC shows the highest occupied seniors housing properties also have the highest level of rent growth. The analysis
was conducted on 4 years of seniors housing YOY rent growth data and provides compelling evidence that the higher your occupancy,
the more pricing power you have. In addition, higher occupied properties, in general, also have higher Average Monthly Rent
(AMR) levels than lower occupied properties.
For the purposes of this research, seniors housing properties were divided into 5 categories with counts as follows:
For the 4 year period between 4Q06 and 4Q10, the average YOY rent growth in each quarter (collectively) for those properties
that were 95% to 100% occupied was 2.9%. Properties that were 90% to 95% had an average YOY rent growth each quarter of
2.8%, while properties that were 85% to 90% had average YOY rent growth in each quarter of 2.4%. The laggards in this category
were properties that were 80% to 85% occupied (2.2% average YOY rent growth in each quarter) and properties that were below
80% occupied (2.0% average YOY rent growth in each quarter).
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