Insider Newsletter

April 26, 2024

Senior Housing Occupancy Rate Increases for Eleventh Quarter

The NIC Analytics team reviewed key first quarter 2024 senior housing data trends during a webinar with NIC MAP Vision clients on April 11. Guest speaker David Fasano, Managing Director with Berkadia, discussed the transaction and capital markets environment in senior housing with Lisa McCracken, NIC’s Head of Research & Analytics.

Key takeaways included the following:

  • Occupancy increased for the eleventh consecutive quarter
  • Occupied units continued climbing to record highs
  • Annual inventory growth rate remained low
  • Senior housing units under construction least since 2015

Read more here.

Big Retail Healthcare Strategies and the Implications for the Senior Housing and Care Sector

Major retailers are jumping into the healthcare market opening potential partnership opportunities for senior living providers. Amazon, Best Buy, CVS, Kroger, and Walmart are growing their footprints of in-store and community-based health-related services. A panel of leaders from major retailers mapped out their strategies at the 2024 NIC Spring Conference. Attendees learned how collaboration with the retail sector can help meet the healthcare needs of older adults where they live. Read the session recap here.

NIC INSIGHTer: Aging Inventory Impacts in Senior Housing

“Nearly 44% of senior housing inventory is now more than 25 years old. What impact do you see this having on the sector as a whole?”

“This has the potential to simultaneously address two challenges as the Baby Boomers arrive: Accelerate the development of new properties to meet growing demand while repositioning the older inventory to meet the needs of the middle market cohort.”

Aaron Becker
Senior Managing Director, Lument

 


 

“This can be seen as a challenge or opportunity. I see it as an opportunity to use these communities to create a new market subsegment for the forgotten middle or middle market. Short term, with absorption high and little new development in the face of increased demand, these communities are likely to manage, but long term, there is a pressing need to use this real estate and forge a new operating model that will serve this large and deserving group of Americans.”

Lynne Katzmann
President & CEO, Juniper Communities


“Aging inventory in the face of growing demand is both an opportunity and a challenge as it highlights the nuances of investing in our sector – once again frustrating those who want to think about the industry “as a whole.” In the past four development cycles (late 1980s, mid-1990s, early 2000s, and 2016-2022), we have failed to soberly match supply growth with demand. With increased transparency, I am hopeful we will avoid the inefficient boom/bust cycles of the past.”

Kurt Read
Partner, RSF Partners


If you have a suggested question for future NIC INSIGHTers, we want to hear from you!

National Volunteer Week – Celebrating NIC Volunteers!

This week is National Volunteer Week – a time to celebrate the efforts of volunteers across the country who give their time and talent to organizations and causes that are important to them. As a non-profit organization, NIC relies on the contributions of talented and dedicated volunteers to advance our mission of enabling access and choice for older adults. NIC expresses its sincere gratitude to all the industry experts who partner with us to achieve our strategic objectives. Learn more about the opportunities to serve and hear from volunteers about why they give back, here.

Partnering to Deliver Better Care, Staff Satisfaction, and Financial Results

Lisa McCracken, Head of Research & Analytics sat down with Brett Landrum, Procare HR Founder and Co-CEO, and Susie Koenig, Founder & CEO, SAK Healthcare during the 2024 NIC Spring Conference for an episode of the NIC Chats podcast. Landrum expanded on the HR capabilities that can help operators deliver better quality of care, staff satisfaction, and financial results while Koenig shared how SAK Healthcare has found success partnering with Procare HR as they work to shore up communities in distress. Listen here.

Showcase Your Senior Living Property!

NIC invites you to submit photographs of senior housing and nursing care properties to be featured in the seventh edition of the NIC Investment Guide, to be published in fall 2024. Photos may be quickly uploaded on our digital platform. Learn more here.

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