Skilled nursing continues to have the weakest inventory growth out of long-term care property types, with independent living leading the pack.
That’s according to a new analysis of primary housing markets by the National Investment Center for Seniors Housing & Care, based on the most recent market cycle peak reached in the fourth quarter of 2014.
Over that time period, the nursing care segment had the weakest overall inventory at -0.4%, a 2 percentage-point decline in occupancy. Its average annualized asking rent growth rate sat at about 2.7%, Lana Peck, senior principal for NIC, noted in a blog post this week.
Meanwhile, by comparison, the memory care segment had the highest inventory growth, 33.6% (explained in part by the relatively small inventory base), and the largest decline in occupancy, 5.1 percentage points, to 82.7%. Average annualized asking rent growth for the period, at 2.5%, was the lowest of any segment, Peck said.
The independent living segment, housing seniors who require the lowest level of care, saw 5.7% inventory growth. Occupancy only decreased by 0.3 percentage points, from 91% to 90.7%, for the segment. That allowed average annualized asking rent rates to increase faster (3.2%) than in the other types of senior care.