By HFT Staff

The senior housing occupancy rate for the NIC MAP Primary Markets increased to 83.7 percent in the second quarter of 2023, up 0.6 percentage points from the first quarter and marking eight consecutive quarters of increases, according to data from NIC MAP Vision analyzed by the National Investment Center for Seniors Housing & Care (NIC). 

The occupancy rate increased 5.9 percentage points overall from a pandemic low of 77.8 percent in the second quarter of 2021 but remained 3.4 percentage points below the pre-pandemic level of 87.1 percent in the first quarter of 2020. 

The number of occupied units increased 0.9 percent in the second quarter, while total units for senior housing grew by only 0.2 percent. Compared with year-earlier levels, inventory increased by 1.3 percent, the smallest since 2012. 

Units under construction amounted to 4.9 percent of total existing senior housing inventory, down 2.8 percentage points from the high of 7.7 percent recorded in the fourth quarter of 2019. It is the lowest level of construction since 2014.

NIC experts note that occupancy at assisted living properties is recovering faster than occupancy at independent living properties likely due to the more needs-based demand of assisted living properties: 

• The assisted living occupancy rate increased to 82.0 percent in the second quarter of 2023, up 0.8 percentage points from 81.2 percent in the previous quarter. This is 2.5 percentage points below its pre-pandemic level of 84.5 percent. 
• The independent living occupancy rate increased to 85.4 percent in the second quarter of 2023, up 0.3 percentage points from 85.1 percent in the previous quarter. This is 4.2 percentage points below its pre-pandemic level of 89.6 percent. 

Boston (89.0 percent), Baltimore (87.5 percent), and Portland, Ore. (86.9 percent) had the highest occupancy rates of the 31 metropolitan markets that comprise the NIC MAP Primary Markets. Houston (78.7 percent), Cleveland (80.8 percent), and Atlanta (80.9 percent) recorded the lowest. Houston was the only primary market with an occupancy rate below 80 percent.