New data released by NIC MAP for second quarter 2010 shows that senior housing occupancy rates fell for independent living and rose for assisted living. Occupancy rate stabilization has improved because of a return to positive absorption rates with a reading of 1.7% in second quarter 2010. The data also showed a rise in trailing-twelve month (TTM) construction starts as the industry began to see construction move forward on 1,659 senior housing units that were started in the second quarter. Average monthly rents per units were $2,705 for independent living and $3,525 for assisted living which reflected less than one percent year over year growth when compared to Q1 2010.
Other statistical highlights include:
- Assisted Living property occupancy rates in 2Q10 was 88.3%, up from 87.8% in 1Q10 and a year ago, in 2Q09.
- Independent Living Occupancy rates fell to 87.4% during the second quarter of 2010, down from 87.5% in 1Q10 and 88.0% a year ago.
- Skilled nursing occupancy rates were 88.6% in 2Q10, down from 88.9% in 1Q10 and 89.2% in 2Q09.
“Although the occupancy rate for independent living is still declining, there are some signs that it may be at or nearing its cyclical bottom,” said Michael Hargrave, vice president – NIC MAP. “For example, during the last year the independent living occupancy rate is down 0.6 percentage points, compared to the previous four quarters when it was averaging a decline of 1.85 percentage points.”