Seniors Housing Actual Rates
What are residents actually paying? Insights provided by Beth Mace, NIC's Chief Economist.
NIC is the first to collect and report on actual rates data, which provides information to operators and investors for benchmarking and strategic planning efforts. The ongoing Actual Rates Initiative is an effort to expand seniors housing data. Featured within a NIC MAP Data Service report, actual rates data includes cuts for independent living, assisted living, and memory care on:
- Leasing Activity: as measured by move-in and move-out velocities
- Actual Rates: includes both in-place and move-in rates
The current national data set includes:
- 25 to 30 operators
- More than 2,500 properties
- 300,000 units
NIC MAP plans to report additional metropolitan markets going forward based on the participation rates of the local seniors housing operators.
2Q20 Seniors Housing Actual Rates Key Points:
- Average initial rates for residents moving into independent living, assisted living and memory care segments were below average asking rates, with monthly spreads generally largest for memory care, followed by independent living segments and then assisted living segments. *Care segments refer to the levels of care provided to a resident living in an assisted living, memory care or independent living unit.
- Average in-place rates for residents in assisted living and memory care segments were below average asking rates. The discount was smaller for in-place rates than initial rates compared with asking rates.
- The rate of move-outs has exceeded or equaled the rate of move-ins for nine of the prior twelve months for both the independent living and assisted living segments, and for seven of the last twelve months for the memory care segment as of June 2020.
- For the memory care and assisted living segments, in-place, asking and initial rent growth have been essentially negative on a year-over-year basis for the past twelve months.
- Year-over-year asking rent growth has been negative for the past six months for the independent living care segment.
- Independent living, assisted living, and memory care segments in the three metro-reported areas (except for memory care in Atlanta) experienced fewer move-ins than move-outs for the second quarter of 2020 or said another way, the pace of move-outs exceeded the pace of move-in during the quarter.