Q4 Senior Housing Occupancy Rate Held Steady, Promising Signs Emerged

Although senior housing occupancy rates nationwide remained near historic lows in Q4 2018, the increase in occupied units hit a new high, according to the National Investment Center for Senior Housing & Care (NIC) Q4 market fundamentals report.

Courtesy of NIC

A snapshot of Q4 2018 senior housing occupancy rates, as recorded by NIC.
Overall senior housing occupancy inched upward by 0.1% in Q4, to 88%, although this number is 0.7% lower than Q4 2017. Occupancy rates for independent living held steady at 90.2%, while assisted living occupancy continued an upward trend, rising 0.1% to 85.4%, NIC Chief of Research and Analytics Chuck Harry told Senior Housing News. The current occupancy is 2.2% lower than the most recent high of 90.2%, set in Q4 2014.

The report does contain reasons for optimism. The number of occupied senior housing units increased 1% (5,149 units) last quarter, which is the highest recorded since NIC started tracking data in 2006, Harry said. In previous reports, NIC cited the rate of inventory growth exceeding the absorption of units as the main driver in the downward trend in the occupancy rate.

Even though demand kept up with new supply last quarter, Harry indicated it is too soon to foretell what might happen this early in the new year.

“We’re taking a wait-and-see approach on the occupancy and absorption, moving forward,” Harry said. “Keep in mind that Q1’s numbers will be reflective of the winter months, which can create downward pressure on occupancies.”

Construction as a share of existing inventory remained unchanged, at 6% overall, and 1.3% lower than the same time frame in 2017. In independent living, construction as a share of inventory rose 0.3% to 4.9%, while assisted living fell 0.4% to 7.3%.

By Chuck Sudo | January 13, 2019

Our Mission & Vision

Haven Senior Investments’ vision is to serve those who care for senior citizens and others in need of safe and nurturing housing.

Our mission is to serve the owners, operators, buyers, sellers, developers, and investors in the seniors housing and assisted living industry by offering a range of services to help them maximize their objectives and investment returns.

Our purpose is to glorify God by building profitable and sustainable businesses that advance His Kingdom and His children.

The Haven team brings a unique combination of finance, real estate, business development, operations, and healthcare experience to serve our varied senior housing clients. We operate on a team approach, which allows our clients to benefit from the experience and expertise of the whole Haven team. Our efforts are focused on the areas of independent living, assisted living, active adult, and communities that specialize in Alzheimer’s and memory care.

Related Posts

Baby Boomers Seek Safety, Belonging, and Purpose in Senior Housing Choices

As the Baby Boomer generation enters its senior years, the priorities shaping their choice of housing are becoming clearer. This influential demographic cohort is looking beyond mere amenities and location; they are seeking communities where they feel safe, socially engaged, and where their lives can continue to have purpose. Safety and Belonging: A Foundation for

Navigating Loan Challenges: Robust Solutions for Senior Housing Real Estate Stakeholders

In the dynamic landscape of real estate, Senior Housing property owners are not exempt from the financial hurdles that may arise, particularly in the face of loan defaults. However, amidst these challenges lie multiple avenues for financial restructuring and stabilization. It is imperative to seek proficient advice to navigate through these alternatives effectively. Recent discourse

$1 Trillion in Investment Needed

To meet the evolving needs, the senior housing industry requires an astounding 775,000 additional new units by 2030, if we maintain current penetration rates and development activity. If we maintain the current development pace until 2050 and compare it to the required development to meet demand projections, an astounding gap of approximately $1 trillion in

Pioneering Senior Living Solutions – Unveiling the Future of Impactful Investments

Introduction: In an era where the senior living sector is on the brink of a significant overhaul, potential investors are presented with a unique opportunity. The demographic shifts and burgeoning healthcare demands are the driving forces behind this imminent transformation. The statistics are compelling – by 2030, the need for new senior living units will

Scroll to Top

What are you looking for?

Q4 Senior Housing Occupancy Rate Held Steady, Promising Signs Emerged

Input information to download the file