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.

atlanta sl

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.

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Some key points from the segmented markets include:

  •   There was monthly variation in initial rate discounts by geography and segment type during the second quarter of 2020. Of the three metropolitan markets currently being reported by the NIC MAP® Data Service (Atlanta, Philadelphia, and Phoenix), Atlanta’s memory care segment had the largest discount in initial rates relative to asking rates, with a discount equivalent to 2.7 months at an annualized basis in April 2020. This was the largest recorded discount of initial memory care rates in Atlanta since January 2017, when NIC MAP began reporting this time series. Phoenix’s memory care segment also reached its highest recorded discount of initial memory care rates at 2.6 months (annualized) in June 2020. Philadelphia’s discount was not as notable and ended the quarter with a 0.4 month annualized discount.
  •    The assisted living segment had overall weaker discounting in initial rates during the second quarter of 2020 than memory care for all three metro areas. This was generally the case for the independent living segment as well. For independent living in Phoenix, discounting for initial rates ended the quarter at 0.7 month in June 2020 on an annualized basis, which is equivalent to the average initial rate discounting over the recorded time series.
  •   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.
philadelphia

Learn more about NIC MAP Data Service

The premier provider of unbiased market data for the seniors housing and care sector. 

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Interested in Participating in the Actual Rates Initiative?

NIC is collecting data from operators of rental seniors housing (independent living, assisted living, and memory care) who have five or more properties. We have expertise in extracting data from industry leading software systems and can facilitate the process for you.

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