Skilled nursing occupancy continues to trend up across the country, although at a moderating pace. The sector logged the 13th straight quarter of occupancy increases during the three months through June, but the 30 basis point jump was the smallest gain recorded during that stretch, a Marcus & Millichap special report on the skilled nursing sector said.

Overall occupancy was 84% during the second quarter, down 220 basis points from the same point in 2019, and the 63,000 beds absorbed from April 2021 to mid-2024 still trails the 105,000 beds relinquished during the pandemic, said the report. Shrinking supply has bolstered occupancy growth, as national inventory fell by 0.6% for the year ended in June 2024 and 5% over the past seven years.

During the quarter, rents grew 4.1% on steady demand increases and a cutback in supply. Rents increased in every US region by at least 3%, led by the Great Plains and Rocky Mountain areas, which logged the fastest increases amid substantial inventory decreases, said the report.