Nursing home occupancy, absorption rates dip further
Rent growth was up slightly but numbers otherwise were generally dim for nursing home market indicators in the fourth quarter of 2015. The occupancy rate for skilled nursing facilities decreased 0.1% during the fourth quarter of 2015, according to data released late Wednesday by the National Investment Center for Seniors Housing & Care.
The overall occupancy rate for SNFs now sits at 87.4%, down from 87.5% in the third quarter of 2015. Occupancy for the broader “seniors housing” category, powered mostly by independent living, rose 0.2%, to 90.1%.
The report showed the annual inventory growth for nursing homes was down 0.1% in the fourth quarter, a slowdown from the negative 0.4% rate in the third quarter.
The annual rent growth for SNFs reached 3.0% in the fourth quarter, a boost of 0.3% from the third quarter's growth rate of 2.7%. Annual absorption for nursing homes was down 1% (vs. a drop of 1.2% a quarter early), with construction vs. inventory at 0.8% in the fourth quarter just below the 0.9% level the previous quarter..
NIC also released occupancy and annual rent growth data for specific geographic regions, which can be found here.