For the second consecutive quarter, new development activity for seniors housing showed a marked slowdown. Indeed, seniors housing construction starts totaled 2,737 units in the first-quarter of 2016, comprised of 802 independent living units and 1,935 assisted living units. On a four-quarter basis, a slowdown also was evident, as starts totaled 19,243 units, the weakest pace in a year. The decline in starts may suggest that the market is responding to well-publicized concerns about supply. Data for the second and third quarter will further illuminate this possibility. Anecdotally, some properties scheduled to break ground in the first quarter failed to do so because of higher construction costs or the discovery of new competition in the area, or because they were waiting on final financing approval.
NIC released its initial Skilled Nursing Data Report on March 10, 2016. The report included a few key data points that showed time-series data from October 2011 through December 2015. This week’s blog post provides a more detailed analysis of the current data release.
The Labor Department reported that nonfarm employment increased by a healthy 215,000 positions in March. Employment increased in the retail trade, construction, and health care sectors. Job losses occurred in manufacturing and mining. The change in payroll employment for January was revised from 172,000 to 168,000, and the change for February was revised from 242,000 to 245,000. With these revisions, employment gains in January and February combined were 1,000 less than previously reported. The median forecast in a Bloomberg survey called for a 205,000 job increase in March. For the private sector, March’s job gains marked the 73rd consecutive month of positive gains.