4Q2020 NIC MAP Seniors Housing Actual Rates Report Key Takeaways

March 9, 2021

The NIC MAP® Data Service recently released national monthly data through December 2020 for actual rates and leasing velocity. In this release, NIC also provided data on three metropolitan areas:  Atlanta, Philadelphia, and Phoenix.

A few key takeaways from the 4Q2020 NIC MAP Seniors Housing Actual Rates Report are listed below. Full access to the reports and other takeaways is available to NIC MAP® Data Service clients.

  • Average initial rates for residents moving into independent living, assisted living and memory care segments were below average asking rates, with monthly spreads generally largest for memory care. Care segments refer to the levels of care and services provided to a resident living in an assisted living, memory care or independent living unit.
  • The average discount for the memory care segment was the largest of the three care segments in December 2020 and averaged 10.2% below average asking rates. This equates to an average initial rate discount of 1.2 months on an annualized basis, the highest level of discounting for memory care since April 2020.
  • As of December 2020, initial rates for assisted living care units averaged 7.1% ($364) below average asking rates. This equates to an average initial rate discount of 0.9 months on an annualized basis, even with one year earlier.
  • The average annualized discount for independent living segments was 0.8 months in December 2020, more than in December 2019 at 0.6 months.
  • Average in-place rates for residents in assisted living and memory care segments were below average asking rates. The discount was smaller for in-place rates than initial rates compared with asking rates.
  • The rate of move-outs has exceeded or equaled the rate of move-ins for each of the prior twelve months for both the independent living and assisted living segments, and for five of the last twelve months for the memory care segment as of December 2020. The difference between the pace of move-outs and move-ins was widest in the immediate aftermath of the pandemic start in the March, April, and May period.

The NIC Actual Rates Data Initiative is driven by the need to continually increase transparency in the seniors housing sector and achieve greater parity to data that is available in other real estate asset types. Now, more than ever, in the world of the COVID-19 pandemic, having access to accurate data on the actual monthly rates that a seniors housing resident pays compared to property level asking rates helps the sector achieve this goal.

About the Report

The NIC MAP Seniors Housing Actual Rates Report provides aggregate national data from approximately 300,000 units within more than 2,600 properties across the U.S. operated by 25 to 30 seniors housing providers. The operators included in the current sample tend to be larger, professionally managed, and investment-grade operators as we currently require participating operators to manage 5 or more properties. Note that this monthly time series is comprised of end-of-month data for each respective month.

While these trends are certainly interesting aggregated across the states, actual rates data is even more useful at the metro level. NIC is continuing to work towards reporting more markets.

Interested in Participating?

The Actual Rates Data Initiative is an effort to expand seniors housing data and we are looking for operators who have five or more properties to participate. We have expertise in extracting data from industry leading software systems, such as Yardi, PointClickCare, Alis and MatrixCare, and can facilitate the process for you.

Your organization benefits through:

  • More informed benchmarking, strategic planning, and day-to-day business operations,
  • Increased transparency, aligning with other commercial real estate assets in terms of data availability, and
  • Enhanced investment and efficiency across the sector.

Learn more by visiting nic.org/actual-rates.

NIC MAP Vision gives operators, lenders, investors, developers, and owners unparalleled market data for the seniors housing and care sector.

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