An NIC Map Vision summary report shows that occupancy and other basic metrics for the senior housing industry continued to improve in Q2.
Analyzing the market
The senior housing market is divided into several sub-markets. NIC Map Vision divides properties into market segments by the type of units comprising the majority of those on the property. Unit types they consider are: independent living (IL), assisted living (AL) and nursing care (NC) units.
Q2 2023 results
The NIC Map Vision summary gives a quarterly snapshot of the current state of the market for senior housing by reporting on data collected from the top 31 metro markets. The brief discussed here is a freely distributed extract from a more detailed report that is available to their paying clients.
In Q2, overall occupancy for the IL and AL sectors combined rose 0.5 percent to 83.7 percent, extending its post-pandemic recovery. This was largely due to a rise in occupancy for the AL sector. Occupancy in the IL sector also grew, but only slightly.
NIC Map Vision reported occupancy in Q2 2023 was 85.4 percent for IL properties, up 0.2 percentage points in the quarter. Occupancy was 82.0 percent for AL properties, a rise of 0.8 percentage points. Occupancy was 81.9 percent for NC properties, up 0.6 percentage points.
NIC Map Vision reported improving annual rent growth for the three senior housing market segments, with rents rising 5.2 percent for IL properties, up from 4.8 percent last quarter. Rent growth for AL properties was 6.4 percent, up from 5.9 percent last quarter and rent growth for NC properties was 4.3 percent, up from 4.1 percent last quarter.
Cap rates, when measured on a rolling 4-quarter basis through Q4 2022 were reported to be 5.8 percent for IL and AL properties, down 10 bps from last quarter and unchanged from its level one year ago. The cap rate was again not available for NC properties in the Q2 report, but the price per unit was up 3.4 percent for the quarter. Transaction volume for IL and AL properties was $1,328 million, up from the $964 million reported in Q1 and from the $613 million in transactions reported in Q4 2022.
The NIC Map Vision report is available here.
