Evidence of a market peak continues to build, as both occupancy continues to meet resistance at its current level. While seniors housing occupancy during the third quarter rose 20 basis points to 89.9%, those gains are seemingly all seasonal in nature and likely not indicative of an underlying improvement. After running the same seasonal adjustment procedure the government uses to adjust data such as the unemployment rate, occupancy was essentially unchanged from the second quarter.
The 25th NIC National Conference wrapped up on October 2, bringing to a close three days of connecting with seniors housing and care leaders and exploring the prevalent issues affecting the industry today. This year’s theme, The Next 25, reflected on where we’ve been and where we’re headed.
Construction and supply continue to remain hot topics in seniors housing, especially in assisted living, where construction exceeded 6% of existing inventory during the second quarter of 2015. The risk for older properties is in the potential loss of market share, which could be siphoned by new competitors.