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?
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?
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.
