Assisted living operators are continuing to offer rent discounts to entice prospective residents, whereas in-place rate growth is picking up, according to the National Investment Center for Seniors Housing and Care.
The organization shared key findings from its Seniors Housing Actual Rates Report Wednesday on its blog. The report provides aggregate national data for 2018 through June associated with more than 2,500 properties operated across the country by more than two dozen companies.
Initial rates at communities where units mostly were assisted living averaged 9.2% below the average asking rate, which is equal to an average initial rate discount of 1.1 months on an annualized basis. That was an increase from December, when the amount was equal to one month.
The discounts seemed to have the desired effect, however, with the move-in rate exceeding or equaling the pace of move-outs in nine of the past 12 months. Move-outs exceeded move-ins in the first two months of the year, however, perhaps due to the severe flu season, NIC said.
Meanwhile, the speed of average in-place rate growth for assisted living communities has picked up since the end of 2017. It is up 1.5% in June from the average rate a year earlier, NIC said, although the bump could be seasonal.
Assisted living initial rates in June were growing at an average of 2% from rates a year earlier and also above the in-place rate growth of 1.5%, NIC said. In only four of the past 12 months, however, has annual growth in assisted living move-in rates been stronger than in-place rate growth, the organization said.
Read more, including information related to majority independent living properties, in the blog.