Assisted living initial rates average 7.8% below average asking rate: NIC

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The new logo for the National Investment Center for Seniors Housing & Care.
The new logo for the National Investment Center for Seniors Housing & Care.

Assisted living communities, on average, are in effect discounting their annual rates by almost a month, according to the inaugural Seniors Housing Actual Rates Report released Wednesday by NIC MAP at the National Investment Center for Seniors Housing & Care fall conference.

As of June, assisted living initial rates averaged 7.8% below their average asking rate, according to the report, which equates on an annualized basis to an average initial rate discount equivalent to just under one month.

The report features monthly time series data from more than 250,000 independent living and assisted living units across more than 2,500 seniors housing properties, covering April 2015 through June 2016.

Other highlights:

  • Both the average in-place rates and average initial rates were below the average asking rates for both independent living and assisted living properties, with the monthly spreads greater for assisted living properties.
  • The rolling three-month average asking and initial rates for both independent living and assisted living properties increased from June 2015 to June 2016, with the increases in initial rates slightly outpacing the increases in asking rates for both property types.
  • Resident turnover was significantly greater within assisted living properties than within independent living properties.
  • The pace of move-ins at independent living properties was more consistently on par with the pace of move-outs and resulted in a steadier average occupancy rate than experienced across assisted living properties.

In other news at the conference, NIC unveiled a new logo and tagline — “Data. Analytics. Connections.” More than 2,500 people are attending the event, which runs through Friday in Washington.

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