In the second quarter of 2024, the senior housing occupancy rate for 31 NIC MAP Primary Markets reached 85.9 percent, increasing 0.5 percentage points from the first quarter.
This is the twelfth consecutive quarter of occupancy gains within the senior housing market. According to the National Investment Center for Seniors Housing & Care (NIC), there has been a 0.7 percentage point increase in independent living occupancy and a 0.5 percentage point increase in assisted living occupancy from the first quarter. In addition, occupied senior housing units reached a record number of 606,968 units, a 4.4 percent increase compared to the same period in 2023.
Related: Three Strategies to Streamline Cleaning Labor in Senior Living Facilities
Despite these gains, senior housing construction remains down, with the fewest senior housing units under construction since 2014 and the fewest new builds since 2009. According to NIC, less than 900 new senior housing construction projects started in the second quarter. Access to capital, cost of capital and construction costs remain significant headwinds to senior housing development.
“I think we will continue to see developers exercise caution until capital becomes more affordable and accessible. We are hopeful that anticipated rate cuts this year will start to trigger more growth,” says Lisa McCracken, NIC’s Head of Research & Analytics in a press release.
Mackenna Moralez is the associate editor of the facilities market
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