With strong gains across all senior housing sectors as of the first half of 2014, the top 20 metros are showing 90%-plus occupancy among independent living communities.
According to data from the National Investment Center for the Seniors Housing and Care Industry cited by Marcus & Millichap in its biannual industry report released this month, Minneapolis shows the highest independent living occupancy at 95.1% followed by Boston, Sacramento, Pittsburgh and Baltimore.
“Operators will forego major rent hikes this year to maintain stronger occupancy,” Marcus & Millichap predicts in its outlook. “By year-end 2013, occupancy at IL facilities is anticipated to reach 91.5 percent, an 80-basis point improvement. Average rents will advance 1.8 percent to $2,822 per month.”
Assisted living among those top 20 metros showed slightly lower occupancy numbers with demand anticipated to increase in 2014.
“Both construction and AL demand will accelerate this year,” Marcus & Millichap expects. “By year-end 2014, occupancy at AL facilities will reach 91 percent, an annual climb of 30 basis points. Average rents will improve 1.9 percent this year to $4,170 per month, slightly below last year’s pace.
Written by Elizabeth Ecker