Independent living has been the strongest-performing senior housing segment overall in the primary markets, whereas memory care has been the weakest, since the most recent market cycle peak that was reached in the fourth quarter of 2014. That’s according to an analysis released Wednesday by the National Investment Center for Seniors Housing & Care.
Over the time period, the independent living segment saw 5.7% inventory growth and occupancy that only decreased by 0.3 percentage points, from 91% to 90.7%, which NIC Principal Lana Peck said allowed average annualized asking rent rates to increase faster (3.2%) than in the other segments.
By comparison, she said, 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, from 87.8% to 82.7%. Average annualized asking rent growth for the period, at 2.5%, was the lowest of any segment, Peck said.
“Compared with the other segments, memory care had the lowest overall occupancy rate in the second quarter of 2018, 82.7%, falling to its lowest level since NIC MAP began reporting the data in the fourth quarter of 2005,” she wrote.
In between independent living and memory care was assisted living, with 11.5% inventory growth. Assisted living occupancy declined 3.5 percentage points, from 90.2% to 86.7%, to arrive at its lowest level since the fourth quarter of 2014. Average annualized asking rent growth for the period, at 3.1%, was similar to that of independent living, however, Peck said.
Read the whole analysis on the NIC website.