December 23, 2019
Matt Alley

CCRC vs Non-CCRC Performance 2019

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CCRC vs Non-CCRC Performance 2019 – by Matthew Alley

This week, NIC released an extensive data report detailing CCRC vs Non-CCRC performance as of Q3 2019. View the full report by NIC Senior Principal Lana Peck here, or read a condensed summary of the data below:

How Did CCRCs and Non-CCRCs Compare as of Q3 2019?

Essentially, CCRCs had higher occupancy, higher rent growth and lower inventory growth than non-CCRCs as of Q3 2019.

Higher Occupancy at CCRCs

Why was CCRC occupancy higher? Potential reasons could be the higher inventory growth at non-CCRCs, lower turnover at CCRCs, characteristics of CCRC customers / new residents, and relative performance of the majority unit mix.

How exactly did inventory growth and occupancy at CCRCs and non-CCRCs compare over a three year period?

CCRC vs Non-CCRC Performance: Units, Occupancy and Rent Comparison

Memory care at CCRCs showed the strongest occupancy gain (2.3%), followed by independent living (0.7%), assisted living (0.3%) and nursing care (0.1%).

Independent living at non-CCRCs showed the strongest occupancy change (which was -3.0%), followed by assisted living (-2.6%), memory care (-1.1%) and nursing care (-0.3%).

How exactly does the unit mix compare among CCRCs and non-CCRCs?

CCRC vs Non-CCRC Performance: Unit Mix Comparison

Higher Rent Growth at CCRCs

CCRCs showed higher year-over-year average rent growth in total and by care type than non-CCRCs.

Independent Living at CCRCs had the highest year-over-year rent growth over a three year period (3.4%), followed by assisted living (3.3%), nursing care (3.0%) and the memory care segment (2.9%).

Assisted living at non-CCRCs had the highest year-over-year rent growth over a three year period (2.6%), followed by memory care (2.5%), nursing care (also 2.5%) and independent living (2.1%).

 

Lower Inventory Growth at CCRCs

Non-CCRCs showed a higher inventory growth in total and by care type than CCRCs (5.6% vs. 1.6%, respectively).

Memory care at CCRCs had the highest inventory growth (12.4% or 1,507 units), followed by independent living (2.9% or 5,867 units) and assisted living (1.8% or 895 units). Nursing care inventory declined by 2.3% or 2,377 beds.

Memory care at non-CCRCs also had the highest inventory growth (24.9% or 24,752 units), followed by assisted living (12.1% or 38,904 units), and independent living (10.8% or 20,562 units). Nursing care inventory declined by 1.1% or 8,443 beds.

Full data report on CCRC vs non-CCRC performance originally published by NIC here.

 

If you have any questions on the topics of this post or would like a confidential valuation of part or all of your seniors housing portfolio, please contact Matthew Alley at 630-858-2501 ext. 225 or alley@slibinc.com.