NIC Announces Premier Partners for 2010 at Regional Symposium
National Investment Center for the Seniors Housing & Care Industry (NIC) recently released data for fourth quarter 2009 that showed occupancy rates for senior housing declining while rents continue to see increases. The data also showed that construction pipeline for new products is drying up as new product rolls into active inventory. Average occupancy during fourth quarter 2009 was 88.2% versus 89.8% during Q4 2008.
"At the same time, our fourth quarter 2009 data was the third straight quarter where seniors housing registered positive absorption, indicating positive demand growth," said Robert G. Kramer, president of NIC. "More people have been living in seniors housing in the past year, so the industry is growing in terms of consumer demand."
The average monthly rent (AMR) per unit for independent living was up slightly during the 4Q09 to $2,659, which compared to $2,618 year over year. For assisted living, the AMR was $3,536 in the 4Q09, up from $3,478 during the 4Q08.
For independent living, the trailing-twelve month (TTM) construction activity was just 0.5% of existing inventory in 4Q09.
"Supply grew faster than demand during the quarter, which led to an overall lower occupancy rate," explained Kramer. "But the construction pipeline is emptying out as more units come online. In addition, the rate of starts has slowed significantly. And with the very tight credit markets, that situation is unlikely to change anytime soon. This could be very positive news for occupancy growth in seniors housing in 2011 and 2012."
At its regional symposium in San Diego, California, NIC announced that Health Care REIT, Inc. (NYSE:HCN) and Surface Logic became official premier partners with the organization for 2010. The partnership – created specifically for companies who support multiple NIC events and initiatives annually – offers a year-long association with the organization whose mission is to advance the quality of seniors housing and care in America by facilitating informed investment decisions.