Credit crisis affected seniors housing in 2008 fourth quarter, NIC reports
States using Medicaid stimulus funding to fill budget gaps, report finds
Roughly $1 billion in loan volume was pumped into the seniors housing and care industry during the fourth quarter last year. That compares with average quarterly loan volume of $1.54 billion over the last three years, the NIC report found. Still, loan performance dropped just 40 basis points compared to the same quarter in 2007. It generally held steady from the third quarter of 2008. NIC officials, however, did note the first seniors housing foreclosure in five years, which occurred in the assisted living sector.
Meanwhile, capitalization rates continued their upward climb in the skilled nursing sector, growing from 12.75% in the third quarter to 13.1% in the fourth quarter. Rates in the assisted living sector grew only slightly during the same time, ticking up from 9.2% to 9.3%, according to NIC.