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Senior Housing Turnover is High, Occupancy Rates Increase

Thu, 02/24/2005 - 1:00am — Karen Stevenson
Description: 

The National Investment Center for Senior Housing Industries (NIC) reports in their February Newsletter that average resident turnover is 50%+ for assisted living and 30% for independent living. They also report that median occupancy rates for senior housing is now averaging:

90% - Independent Living
87% - Assisted Living
91% - CCRCs
87% - Nursing Homes

What does this mean to the consumer? Several things. First, the relatively high occupancies mean the over-supply of a couple years ago is working itself out and owners will probably be able to charge somewhat higher rates than they did when they had more occupancy problems.

Second, the high turnover levels indicate that people who move in are not staying long. This could be because they didn't like the facility, but could also mean they chose a place that couldn't handle their needs as they changed, and the resident subsequently had to move on to a place where they could get more care. Whichever it is, a short stay in an assisted or independent living facility is probably not good for anyone. The move is too traumatic if it isn't going to last.

I think the take-home message is that anyone investigating independent or assisted living facilities should be sure to ask lots of questions to help determine how long that solution can be expected to work, especially if the resident's condition deteriorates somewhat in the future.

The National Investment Center for Senior Housing Industries (NIC) reports in their February Newsletter that average resident turnover is 50%+ for assisted living and 30% for independent living. They also report that median occupancy rates for senior housing is now averaging:

90% - Independent Living
87% - Assisted Living
91% - CCRCs
87% - Nursing Homes

What does this mean to the consumer? Several things. First, the relatively high occupancies mean the over-supply of a couple years ago is working itself out and owners will probably be able to charge somewhat higher rates than they did when they had more occupancy problems.

Second, the high turnover levels indicate that people who move in are not staying long. This could be because they didn't like the facility, but could also mean they chose a place that couldn't handle their needs as they changed, and the resident subsequently had to move on to a place where they could get more care. Whichever it is, a short stay in an assisted or independent living facility is probably not good for anyone. The move is too traumatic if it isn't going to last.

I think the take-home message is that anyone investigating independent or assisted living facilities should be sure to ask lots of questions to help determine how long that solution can be expected to work, especially if the resident's condition deteriorates somewhat in the future.