News analysis: Seniors housing likely to recover sooner

As the housing market continues its slide, a news report offers some encouraging news for long-term care: Senior-housing stocks have the potential to rebound before the rest of the market.

Worries have abounded that the housing downturn would affect occupancy rates of nursing homes and other care facilities since a large portion of seniors sell their houses to fund their long-term needs. But in an analysis piece, The Wall Street Journal points out that the national occupancy rate is still near 90%, and that declining house prices have not affected the pace of rate increases as much as some had predicted.

Currently, 7% of those over 75 live in a retirement community or other senior housing. By 2010, there will be 6.1 million seniors over the age of 85. The “need-driven” aspect of senior care and housing will see these markets through the recession, the Journal suggests.