Skilled nursing hasn’t escaped the sweeping changes affecting how health care is delivered and paid for in this country. But unlike the rest of the seniors housing and care industry, which has experienced a significant surge of capital, skilled nursing has received less investment dollars—even though the sector demonstrates a need, as it’s been affected by the policy and regulatory changes in recent years.
The average occupancy rate for seniors housing properties in the fourth quarter of 2015 was 90.1%, as net absorption of units outpaced the additions to inventory. This represented an increase of 20 basis points from the prior quarter, and was 20 basis points shy of its cyclical peak of 90.3% that was reached in the fourth quarter of 2014.
For December, the Labor Department reported that non-farm employment increased by a strong 292,000 positions, while the prior two months were upwardly revised by 50,000 jobs. Record warm weather in the month may have had an impact on the impressive December increase since construction jobs remained at unseasonably high levels.