Financial crisis hurting seniors housing market, NIC reports

Share this article:
Editors' Blog: Targeting Medicaid
Editors' Blog: Targeting Medicaid
Loan performance and capitalization rates in the senior housing sector are beginning to feel the pinch of the nation's credit crunch, according to a new market analysis released Tuesday by the National Investment Center for the Seniors Housing & Care Industry (NIC).

Loan volume in the third quarter of 2008 reached $1.01 billion, continuing a slide of the last fiscal year and a half. It topped out at $2.28 billion in the first quarter of 2007, according to the NIC report. Loan performance, meanwhile, reached its lowest level sine 2005, falling to 98.9%. Further loan performance deterioration is predicted over the next 18 months, NIC president Robert Kramer said in a statement.

Also affected by the weak economy are capitalization rates, which are higher this year than last. Rates for skilled nursing are up to 12.75% in the third quarter of 2008, compared with 12% in 2007. Numbers for the assisted living market are also higher, rising from 8.5% to 9.2% from 2007 to 2008, according to NIC numbers.
Share this article:

More in News

House leader urges HHS to end settlements meant to cut Medicare backlog

The Department of Health and Human Services may not have had the authority to offer providers special settlements to help clear a huge backlog of Medicare appeals, a leading Congressman said in a recent letter to the agency. Rep. Kevin Brady (R-TX) is urging HHS ...

One-fifth of caregivers take 6 months or longer to choose a senior ...

A significant number of people take six months or longer to choose a senior care or housing option for a loved one, recently released survey results showed.

CMS releases updated Minimum Data Set manual

CMS releases updated Minimum Data Set manual

The Centers for Medicare & Medicaid Services released an updated version of the Minimum Data Set 3.0 Resident Assessment Instrument manual Friday.