Senior Housing: Standing Out from a Crowd – Seniors Housing Occupancy and Absorption Rise in the Third Quarter
Notwithstanding a resumption of growth in sundry measures of economic activity, multifamily and commercial real estate fundamentals continue their slide across the swath of US metropolitan areas. Real Estate Econometrics projects that national occupancy rates will only stabilize in late 2010 and 2011, first in the apartment and industrial sectors; later, at office and retail properties. In contrast, the third quarter’s seniors housing occupancy rates will only stabilize in late 2010 and 2011, first in the apartment and housing occupancy and rent trends evince the sector’s distinct relationship to broader economic and housing market conditions. Across the nation’s metropolitan areas, seniors housing rent growth has slowed as occupancy rates have edged down. But by both measures, the sector has thus far avoided core commercial real estate’s more precipitous slump in fundamentals. In fact, the seniors housing occupancy rate rose in the third quarter as absorption surpassed completions for the first time in almost three years. Whether a trend of rising occupancy rates develops and can be sustained depends upon whether absorption holds up in parallel with the next year’s elevated inventory additions.
Read the full article here: Standing Out From a Crowd
from The Chief Economist on GlobeSt.com
Sam Chandan Phd FRICS, Real Estate Econometrics and the Wharton School
Michael Hargrave, National Investment Center for the Seniors Housing and Care Industry
