The Labor Department reported on Friday that nonfarm payrolls increased by a seasonally-adjusted 138,000 positions in May, well below the consensus 182,000 estimate. This followed gains of 174,000 in April, originally reported as 211,000 and 50,000 in March, originally reported as 79,000. Monthly revisions result from additional reports received from businesses since the last published estimates and from the recalculation of seasonal factors. Over the past 5 months, job gains have averaged 162,000 per month, less than the 187,000 monthly pace in the first 5 months of 2016. The economy has generated jobs every months since October 2010.
Its Local, local, local. Seniors housing market fundamentals are not the same for all markets as local development and demand situations shape conditions. In the first quarter of 2017, pronounced differences in occupancy rates could be seen by both property type and geography. By property type at the national level, there was a 370 basis point difference between majority assisted living and majority independent living occupancy rates (87.2% versus 90.9%)—the largest differential in the two data series since NIC began collecting the data in 2005. By geography, the differences were even wider. For assisted living, occupancy rates ranged from nearly 93% in San Jose to less than 72% in San Antonio. For independent living, the gap between best and worst market was narrower, with Houston ranking lowest at 83% and San Jose maintaining its rank as strongest with a 96% occupancy rate in the first quarter. The balance of this blog post will look at these differences in more depth.
The first segment of this multi-part series established that market studies are a critical component of determining whether a proposed seniors housing property is an attractive investment opportunity. The second segment touched on maximizing accuracy in defining a market area. And the third segment discussed quantifying and qualifying the competitive environment.