Assisted living fundamentals softened in 1Q13

The recovery in assisted living occupancy stumbled, as occupancy declined for the first time in two years. In the first quarter of 2013, assisted living occupancy was 88.8  percent, which is a decrease of 20 basis points from the prior quarter and an increase of 50 basis points from a year earlier. Absorption remained positive, although slowed from its recent pace. The number of occupied units increased by 0.3 percent in first quarter 2013, which was down from its 0.9 percent pace in the prior quarter. Inventory grew by 0.5 percent during the first quarter and, based on current construction, is likely to begin modestly accelerating.

The pace of year-over-year asking rent growth during the first quarter remained positive at 2.4 percent, which is an increase of 40 basis points from that of the fourth quarter. As of first quarter 2013, the asking monthly rent for assisted living properties within the top 31 metropolitan markets averaged $3,671.

Chart Source: NIC MAP^® Data & Analysis Service

I Advance Senior Care

I Advance Senior Care is the industry-leading source for practical, in-depth, business-building, and resident care information for owners, executives, administrators, and directors of nursing at assisted living communities, skilled nursing facilities, post-acute facilities, and continuing care retirement communities. The I Advance Senior Care editorial team and industry experts provide market analysis, strategic direction, policy commentary, clinical best-practices, business management, and technology breakthroughs.

I Advance Senior Care is part of the Institute for the Advancement of Senior Care and published by Plain-English Health Care.