New data analysis on continuing care retirement communities (CCRC) by NIC MAP Vision of the National Investment Center for Seniors Housing and Care (NIC) suggests that the rate at which CCRCs increase rent for residents could impact average occupancy levels. The analysis, focusing on rental and entrance-fee CCRCs between the first quarter of 2022 and the first quarter of 2024, revealed interesting patterns.
In the first quarter of 2024, 68% of entrance fee CCRCs in NIC primary markets reported independent living occupancy greater than 90%, with memory care units closely following at 64%. Regions with stronger census growth tended to have smaller rent increases, with the Northeast and Mid-Atlantic regions showing lower rent growth compared to the Southeast.
Despite ongoing occupancy gains in the senior living industry over the past four years, nonprofit life plan communities still face challenges. A recent report by investment bank Ziegler and NIC MAP Vision highlighted increases in occupancy across various care types, even as Fitch Ratings pointed to a “deteriorating” outlook for nonprofit life plan communities.
