Housing rates holding steady
The occupancy rate for nursing facilities and assisted living facilities remained solid in the fourth quarter of 2014, according to data released in January by the National Investment Center for Seniors Housing & Care.
In the nursing sector, fourth-quarter inventory growth was minus-0.3%, and annual absorption was 0.1%. This demonstrates a slowdown, as annual inventory growth was flat in the prior quarter. Annual absorption was 0.8%.
The nursing care occupancy rate remained at 88.3% and assisted living held at 89.3%. Independent living occupancy increased by 0.4 percentage points from the prior quarter, reaching 91.3%.
“For the fourth consecutive year, annual absorption continues to outpace inventory growth for the overall seniors housing sector. As a result, upward pressure continues on the overall seniors housing occupancy rate,” said Chuck Harry, NIC's managing director and director of research and analytics.
The positive trends are linked to economic improvements and greater consumer confidence, said NIC Chief Economist Beth Mace.