Demand for senior residing is at an all-time excessive and occupancy is on the rise.
In line with the most recent tally from NIC MAP, common senior residing occupancy charges elevated to 87.4% within the first quarter of 2025, up from 87.1% within the fourth quarter of 2024. Senior residing demand has pushed the variety of occupied items to an all-time excessive of about 621,000.
For the primary time since 2019, 4 of the highest 31 largest metro markets NIC tracks had common occupancy charges exceeding 90%. All of these markets are “nicely above” 80% occupancy, based on NIC MAP.
Boston carried the best common occupancy charge at 90.7%, adopted by Baltimore at 90.6% and Cincinnati at 90.2%. Miami dropped to one of many lowest occupancy markets at 84.7% within the first quarter of 2025, becoming a member of Houston and Atlanta at 84.7% and 83.9% respectively.
Unbiased residing occupancy registered at 89% within the first quarter of this 12 months, up from 88.6% within the fourth quarter of 2024. Assisted residing occupancy additionally elevated to 85.8% in 1Q25, up from 85.5% within the earlier quarter.
“Older adults are shifting into senior housing at a fast tempo, and that pattern will proceed given the wave of child boomers and plenty of extra ‘solo agers’ who don’t have a caregiver to depend on as a security internet,” Lisa McCracken, NIC’s head of analysis and analytics, stated within the launch. “The business must ramp up improvement for provide to meet up with demand, however we don’t foresee any significant motion right here in 2025 given present market situations.”
A typical theme amongst the best performing markets is the “comparatively excessive boundaries to entry” for brand spanking new improvement, Arick Morton, CEO of NIC MAP, stated within the launch.
“We’re inspired to see occupancy progress throughout the nation, however we’re carefully monitoring the variety of out there senior housing items to verify older adults proceed to have entry and selection,” Morton stated.
New development begins have been slower within the first quarter of 2024 than earlier years with 1,076 items, the bottom seen because the second quarter of 2009. Models below development have additionally continued to gradual to 19,500, the bottom seen since 2013. As such, NIC expects occupancy to proceed to climb within the coming quarters.
Hire progress within the first quarter of 2025 dropped to three.9%, representing the primary common beneath 4% since 1Q22.
