Assisted living communities are currently offering steeper move-in discounts than independent living providers, according to data from the National Investment Center for Seniors Housing & Care (NIC).
“What we saw is that the monthly rate discount for independent living continues to be less than for assisted living,” NIC Chief Economist Beth Mace told Senior Housing News, referencing The NIC MAP Seniors Housing Actual Rates Report.
As of June 2017, the average assisted living initial rate was 8.8% less than the average assisted living asking rate, the data showed.
On an annualized basis, this equates to an average initial rate discount of almost 1.1 months, which is less than the 1.3 months recorded in December 2016.
The average initial rate discount for independent living, meanwhile, was equivalent to 0.7 month’s rent as of June 2017.
In June 2017, the growth rate of average independent living initial rates was 1.2% higher than it was at that time the previous year. This compares to a 3.3% increase for in-place independent living rates and a 0.5% increase in average independent living asking rates.
Average initial rates for assisted living, meanwhile, were 1.1% higher than year-earlier levels in June 2017. In-place rates were up by 2.7%, and asking rates were 2.2% higher than a year ago.
In-place rates, on average, were higher than average initial rates for assisted living in every month during the last 24 months, and were 7.1% higher on average in June.
Resident turnover is also starting to pick up across senior care settings, the data showed. Independent living move-outs, for instance, have exceeded move-ins for four of the last six months—but during the first six months of 2016, independent living move-outs only exceeded move-ins for one month.
“The turnover of residents for independent living is starting to accelerate a little,” Mace noted.
Meanwhile, assisted living move-outs exceeded move-ins for three of first six months of 2017, compared with two of the first six months of 2016.
For the report, NIC analyzed national data from around 250,000 units within over 2,500 properties across the U.S. operated by 15 to 20 seniors housing providers.
Written by Mary Kate Nelson