ANNAPOLIS, Md. — The private-pay seniors housing occupancy rate for the 31 NIC MAP Primary Markets reached 85.9 percent in the second quarter of 2024, an increase of 50 basis points from the prior quarter, according to data released by NIC MAP Vision and analyzed by the National Investment Center for Seniors Housing & Care (NIC).
The second quarter of 2024 represents the 12th consecutive quarter of occupancy gains, with an increase of 70 basis points in independent living occupancy and an increase of 50 basis points in assisted living occupancy from the first quarter.
The larger gain in independent living occupancy over assisted living, quarter-over-quarter, signifies a change in pattern from prior quarters which saw higher assisted living occupancy growth. However, at 84.3 percent, assisted living occupancy is only 10 basis points from its prior peak of 84.4 percent. At 87.6 percent, independent living occupancy is 200 basis points from its prior peak.
Consumer demand remained strong, with occupied senior housing units reaching a new record number of 606,968 units, nearly 6,200 units above first-quarter 2024 and a 4.4 percent increase in occupied units from the second quarter of 2023. Inventory growth in the second quarter of 2024 was just over 2,600 new units, a modest 1.5 percent growth rate year-over-year.
Seniors housing construction remained depressed in the second quarter, with the fewest units under construction since third-quarter 2014 and the fewest construction starts since the second quarter of 2009, the nadir of the Global Financial Crisis. Fewer than 900 units of new seniors housing construction starts were recorded in the second quarter of 2024, although starts are often restated upwards as new projects are captured in the data. Access to capital, cost of capital and construction costs remain significant headwinds to seniors housing development.
“I think we will continue to see developers exercise caution until capital becomes more affordable and accessible. We are hopeful that anticipated rate cuts this year will start to trigger more growth,” says Lisa McCracken, NIC’s head of research and analytics.
NIC MAP Vision is an Annapolis-based data research organization that tracks metrics in the seniors housing sector. To view the full quarterly report, click here.