Occupancy in the assisted living and independent living sectors has leveled off in the past year after steadily declining since the early part of 2007, according to a soon-to-be-released report from the National Investment Centers for the Seniors Housing & Care Industry.
As of the second quarter of 2010, occupancy crept up slightly to 87.7%, according to Michael Hargrave, vice president of the NIC Market Area Profiles (MAP) service, which will unveil the report next month. Demand is growing at a rate of 7,000 units annually, he told reporters at the NIC annual conference last week in Chicago.
“A demand-level recovery is exactly what the sector needs,” Hargrave said.
Hargrave noted that rent growth has plummeted to 0.7%, but it has not gone negative as it has in other commercial sectors.
Also to be released from NIC next month is a guide for investors and potential investors about the seniors housing and care industry. The “NIC Investment Guide 2010: Investing in Seniors Housing & Care Properties” provides an introduction to the investment characteristics and performance of the sector, as well as the leading industry players.