Following a pandemic-related high of 3.8% in the third quarter of 2020, delinquencies as a share of total loans for senior living declined for the third consecutive quarter and stood at 1.2% in the second quarter of 2021, according to a recent report from the National Investment Center for Seniors Housing & Care.
Skilled nursing loan delinquencies as a share of total loans, however, increased from 0.8% in the first quarter to 1.6% at the end of the second quarter.
Senior living and long-term care saw $62.7 million in foreclosures in the second quarter. This achievement follows nine consecutive quarters with no recorded foreclosures, NIC said.
Newly closed construction loans are on the rise for both senior living and skilled nursing “as lenders became more comfortable in development activity following four quarters of slowing activity related to the pandemic,” NIC research statistician Anne Standish wrote.
Construction loans increased 46.7% for senior living on a same-store, quarter-over-quarter basis, which NIC said represents the highest recorded quarterly increase since the fourth quarter of 2017. Construction loans increased 71.4% for skilled nursing same-store, quarter-over-quarter growth. Skilled nursing construction loan data were based on a relatively small base, NIC noted.
