Poor housing market affects assisted living sectorcnnmoney.com.
Earnings reports from many of the major assisted living providers echoed analysts' assertions of a slowed growth in the sector. Emeritus Corp. reported first-quarter losses of $26 million - much higher than analysts had originally anticipated. In its earnings report, Assisted Living Concepts said its occupancy in private pay units declined by 3.2% and occupied Medicaid units declined by 15.4%.
Many seniors finance their assisted living and nursing homes stays through the sale of their houses. The declining housing market often means seniors will receive little to no profit on the sale of their homes. That prompts many of them to seek home care in lieu of assisted living care, suggests CNN.