Assisted Living Executive to Senior Living Executive

Seniors housing Occupancy continues Recovery

The recovery in seniors housing occupancy continues to gain traction. during third-quarter 2011, seniors housing occupancy rose 0.2 percentage points to 88.1 percent, which marks the sixth consecutive quarter of rising occupancy. Absorption rose to essentially its highest pace in two years, as the number of occupied units increased 0.7 percent from second-quarter 2011. The pace of inventory growth was 0.4 percent in third-quarter 2011, which was the highest pace in a year but likely only a temporary uptick from the levels of the prior three quarters.

The current economic outlook suggests the pace of economic growth will accelerate in 2012, which would put upward pressure on demand. Inventory growth should not be a hurdle in the next year, as completions will likely remain at low levels based on the current delivery schedule. This combination of favorable demand-side dynamics and the continued slow pace of inventory growth points toward a continuation in the occupancy recovery for the coming year.