Assisted Living Occupancy Rates Plateau, But They’re Gearing Up To Explode
It looks like assisted living growth has reached a comfortable plateau, despite fears of overbuilding, but the whole industry is holding it’s breath until Baby Boomers get a bit older.
Inventory growth and absorption rates are heading toward flat, yet favorable, occupancy levels. The National Investment Center for Seniors Housing and Care says through 2017 occupancy in the sector should hang around 88.3%, National Real Estate Investor reports.
“The demographics are moving in favor of this sector, but I would say gradually,” says Beth Dunham Mace, an economist at NIC. “The big push is still a number of years away. Everyone is waiting for the Baby Boomers.”
The year they’re waiting for is 2026—that’s when Baby Boomers en masse will hit the age where Americans tend to look into assisted housing. [NREI]
