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.
In recent blog posts, I’ve given you a “deep dive” into the seniors housing markets in the Southeast, California and Texas. Today, I’ll provide a high level look at the seniors housing market in the Northeast. For an even deeper dive, check out the original article in the May edition of the NIC Insider Newsletter. The Economy. There are six large metropolitan markets among the 31 NIC MAP® Primary Markets in the Northeast. They include Baltimore, Boston, New York, Philadelphia, Pittsburgh and Washington, D.C.