Seniors Housing Weekly Update - Issues In Seniors Housing Occupancy
October 28, 2014
October 28, 2014. 60 Seconds with Steve Monroe. Occupancy is one of the most watched statistics in seniors housing, but it doesn't tell the whole story...
Issues In Seniors Housing Occupancy
For the November issue of The SeniorCare Investor, I am working on a story about occupancy as it pertains to trends in new development, cash flow, operating margins and rental rate increases. And let’s not forget demographics. Let’s just say, it is a difficult topic and there are no easy answers. Maybe it would be better to say there are many answers, and one answer can be right in one market while very wrong in another. As one example, there are differences of opinion on the relationship between penetration rates and occupancy rates. And while we all know demographics is the senior housing sector’s best friend for the next 30 years, when you drill down a little deeper, there are some surprises that people may not want to hear. The average age of people living in senior living communities has risen dramatically over a very small time span, less than 20 years, and if this continues to rise, not only will market demand studies have to re-orient themselves, but entire marketing campaigns may have to change, not to mention building designs. Remember that ancient Chinese curse, “May you live in interesting times.”