Average Occupancy Continues to Fall Amid COVID-19, Says NIC

by Jeff Shaw

ANNAPOLIS, Md. — Assisted living properties experienced a 90-basis-point decline to 85.2 percent stabilized occupancy in May 2020. This compares with 86.1 percent in April and 87.8 percent in March, the first full month of the COVID-19 pandemic.

The data comes from the National Investment Center for Seniors Housing & Care (NIC), based on the Annapolis-based organization’s top 31 U.S. markets. In response to the coronavirus outbreak, NIC has started reporting data monthly rather than quarterly.

The impact was less severe for independent living properties, which experienced a 60-basis-point decrease to 89.5 percent in May, down from 90.1 percent in April and 91.4 percent in March.

“The data showing declines in occupancy at assisted living properties validates what property operators have said about the impact of COVID-19 on the seniors housing sector,” says Beth Burnham Mace, NIC’s chief economist. “Assisted living residents tend to be frailer than independent living residents and often have multiple chronic diseases. Their need for more care means greater risk of complications from COVID-19.”

The change in occupancy in May was less than the previous month in both independent and assisted living facilities, suggesting occupancy declines may be stabilizing.

“It’s too soon to predict whether senior housing occupancy will steady in the months ahead, but it’s a critical piece of information to monitor closely,” says Brian Jurutka, NIC’s president and CEO. “Occupancy shifts are key indicators for property operators to guide informed decisions about residency and current and future staffing needs.”

To view the full report, click here.

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