NIC Notes

Insights in Seniors Housing & Care

Economic Trends  |  Senior Housing

No Rate Cuts for March, but Reductions Likely on the Horizon

By: Lisa McCracken  |  March 28, 2024

As anticipated, at last week’s meeting of the Federal Reserve Board, rates were held steady at 5.25 to 5.50%. Several months ago, there was hope of a potential move towards rate reductions at this March meeting, but as inflation and unemployment numbers have been higher than projected, the likelihood for rate cuts moved further into 2024. In his remarks, Chairman Jerome Powell acknowledged that labor conditions remain tight, but that labor-related supply and demand issues are coming more into balance, overall unemployment figures are low, and we are seeing more nominal wage growth compared to recent years. He noted that, while these indicators are positive, the demand for workers is greater than the available supply. Chairman Powell also noted that, while inflation has come down, current levels remain above the 2% goal. Projections are for continued drops in the inflation rate throughout 2024 and into 2025 and 2026.

Business Environment  |  Economic Trends  |  Senior Housing

Capital Markets Outlook for 2024

By: Zachary Britton  |  January 18, 2024

The 2024 capital markets outlook is that much remains the same. Credit is scarce and the capital markets remain unpredictable. Whether the Fed will cut rates in four months, six months, or even nine months, many investors believe that defense is the best offense. The preceding ten years created a fascinating environment with cap rate compression to historic lows and a substantial amount of newly issued debt. Today, the industry is entering a period of transition where cap rates are starting to progress upward, and historic levels of debt are being repriced in a higher cost of capital environment.

Business Environment  |  Economic Trends  |  NIC Leadership Huddle

“Cycle-Tested” Researchers Weigh in on Market Opportunities

By: NIC  |  June 21, 2023

Despite constrained capital markets and a challenging operating environment, the senior housing sector could be looking at a window of opportunity far more attractive than it has been for some time.

Economic Trends  |  Workforce

Strong Job Gains in May

By: Beth Mace  |  June 02, 2023

The Bureau of Labor Statistics (BLS) reported that nonfarm payrolls rose by 339,000 in May 2023, in line with the average monthly gain of 341,000 over the prior 12 months, but above the upwardly revised gain of 294,000 in April and 217,000 in March. Market expectations had called for a gain of 195,000 jobs. Of note, revisions added 93,000 positions to total payrolls in the previous two months.