After a building boom in the late 1990s through early 2000s that caused an over-supply of beds, there’s been limited new construction of assisted-living and independent-living centers in recent years. Now that excess has been absorbed.
San Francisco, CA (PRWEB) October 22, 2012
The occupancy rate for senior housing properties rose to 88.8% in the third quarter of 2012, up 20 basis points from the previous quarter and a 0.8 percentage point increase from a year ago, says the National Investment Center for the Seniors Housing & Care Industry (NIC). In its press release of October 11th, NIC said that occupancy has reached a four-year high.
Occupancy has been rising consistently in the last 10 quarters and is 1.8 percentage points above its cyclical low of 87% in the first quarter of 2010. After a building boom in the late 1990s through early 2000s that caused an over-supply of beds, there’s been limited new construction of assisted-living and independent-living centers in recent years. Now the excess has been absorbed, and too few facilities exist with growing demand.
Businesses that need to expand or grow in response to this demand have access to SBA loans and other business loans today. Firms like Sunovis Financial specialize in assisting businesses with their lending needs and the best options available.
Rent paid for senior housing is still rising at the rate of about 2% per year. The national average daily rate for a private room in a nursing home rose 4.4% from $229 in 2010 to $239 in 2011, according to a survey by insurer Met-Life. The national average monthly base rate in an assisted living community rose 5.6% from $3,293 in 2010 to $3,477 in 2011. The national average daily rate for adult day services rose 4.5% from $67 in 2010 to $70 in 2011.
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