Occupancy rates and rent growth remained unchanged in the fourth quarter of 2010 based upon information released last week by NIC MAP, a data and analysis service of the National Investment Center for the Seniors Housing & Care Industry (NIC). The statistics showed that the average occupancy rate for senior housing properties in Q4 2010 which was 87.6%; unchanged from 3Q10 and at the same levels from one year ago. The data for Year-over-year rent growth slowed materially in the fourth quarter of 2010 that showed no growth, as compared to 0.6% last quarter. Other highlights from the Q4 NIC MAP data include:
- annual inventory growth for seniors housing during the fourth quarter slowed to 1.5% from 1.8% in Q3 2010
- the annual pace of absorption was 1.4% in the fourth quarter of 2010
- Construction activity for seniors housing slowed slightly in 4Q10 to 1.8% of existing inventory, down from 2.0% the previous quarter and 2.3% one year ago
- nursing care occupancy rate was 88.3% in 4Q10
- Nursing care private pay rents grew 3.1% for the quarter
"It’s clear that occupancy rates have established a pattern of trending sideways over this past year, while the pace of YOY rent growth continues to slow. It’s also reasonable, however, to expect these trends given the current economic environment," according Michael Hargrave, vice president, NIC MAP.