Skilled nursing facility occupancy will decrease to 88% this year, firm anticipates
Occupancy in skilled nursing facilities is expected to decline about 80 basis points, hitting about 88% by the end of the year, according to a recent seniors housing analysis from real estate investment services firm Marcus & Millichap.
Assisted living occupancy also is expected to decrease, to about 90%, while occupancy in both independent living and continuing care retirement communities will increase, the report states. Improvements in the housing market are driving these trends, according to the analysis, as more people are freed from negative equity and can relocate from their current homes to senior living communities.
Skilled nursing operators will continue to see occupancy eroded by residents going to assisted living and hospice, although average rents are up 2.6% from the first half of 2012, reaching $273 per bed per day. The report attributes this to rising care costs and newer facilities that offer therapy and other Medicare-reimbursed services. Average rent is expected to hit $275 per bed per day by the end of the year.
Texas leads the nation in senior housing units under construction, at more than 2,000. Thirteen states, including Florida, Minnesota and Tennessee, have between 1,000 and 1,999 units under construction.
The report was based in part on data from the National Investment Center for the Seniors Housing & Care Industry.