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Assisted Living Occupancy Steadies, New Construction Sparse

ANNAPOLIS, MD-According to the third quarter report from the National Center for the Seniors Housing & Care Industries (NIC), the occupancy rate in assisted living facilities may be stabilizing after a year of consistent decreases. But NIC officials conclude that any stabilization trends will not alter the steadily decreasing construction starts in this industry sector.

By Barbra Murray | Updated on January 07, 2002

ANNAPOLIS, MD-The National Center for the Seniors Housing & Care Industries (NIC) has released its third quarter 2001 report, which indicates that the downward slide in assisted living property occupancy rates may be leveling off soon. While the study concludes that assisted living occupancy numbers did not decline for the first time in 12 months, NIC officials say a trend cannot be confirmed until a second quarter is surveyed.

The average occupancy rate in the third quarter of 2000 was 88.7%. That number declined over the following quarters until the third quarter of 2001, when the rate stood at about 85%; the same rate for the second quarter of 2001. NIC has also found that the dampened economy is having little effect on the occupancy numbers. “I’m not saying that this is a recession-proof sector, but [assisted living] is a need-based product,” NIC Executive Director Robert G. Kramer explains to GlobeSt.Com. “That kind of move is not driven by the state of the economy.”

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