Per-day rate for skilled nursing hit $280 at mid-year, report says
Skilled nursing operators and the senior living sector as a whole are benefiting from improving economic conditions and “healthy demand,” according to a new report from California-based commercial real estate brokerage Marcus & Millichap.
As of the middle of the year, the average per-day rate for a nursing home bed was about $280, the report states. This should hit $284 by the end of 2014, representing a 3.6% increase compared with a year ago. There also should be a “small increase” in occupancy, as inventory growth slows while demand for services remains.
The economy has turned a corner and improvements in the housing market in particular have created favorable conditions for senior living companies, according to the “Seniors Housing Research Report.”
“Retirees are unlocking equity once trapped in their homes due to the soft housing market and deploying those funds towards entrance-fee CCRCs or other seniors housing options,” the authors wrote.
Continuing care retirement communities in fact have experienced a “welcome turnaround” in the last 12 months, and should see average occupancy increase 80 basis points to hit 90.6% this year, according to the document.
Some numbers came from the National Investment Center for Seniors Housing & Care. Click here for the complete report, distributed via an email Wednesday.