Independent living saw the most notable slowdown in year-over-year move-in rates, had the highest discounts and experienced the greatest improvement in the pace of move-ins in the second quarter, according to data from the recently released 2024 NIC MAP Vision Seniors Housing Actual Rates Report.
Those factors help explain the relatively larger occupancy gains reported in the independent living segment, compared with assisted living and memory care, in the second quarter, according to a blog by Omar Zahraoui, senior principal at the National Investment Center for Seniors Housing & Care.
In June, the year-over-year growth for move-in rates in independent living was –0.1%, down from 4.1% in March 2024and 8% in June 2023. Assisted living also saw a decline in move-in rates, which grew by 1.8% year over year in June, a sharp decline from 9.9% in June 2023, according to Zahraoui.
Memory care, on the other hand, saw the highest year-over-year increase in move-in rates among the three segments, with 5.1% growth in June. That rate, however, was lower than the June 2023 growth rate of 8.4%.
Discounts reach new highs
Discounts between asking rates and move-in rates for all care segments reached new highs in the second quarter, with independent living reporting the largest discounts, Zahraoui reported.
For independent living, discounts between asking rates and move-in rates averaged 16% in the second quarter. The average June discount was equivalent to 2.1 months of free rents compared with the asking rate, which was up 1.4 months over June 2023.
In memory care, the average discount for asking rates compared with move-in rates was 10.3% in the second quarter, with the June average discount equivalent to 1.2 months of free rent. In assisted living, discounts between asking rates and move-in rates averaged 9.4%. The average June discount was equivalent to 1.3 months of free rent.
Move-ins exceed move-outs
Move-ins exceeded move-outs in the second quarter across all care segments, with independent living reporting “notable improvements.”
The pace of move-ins in the independent living segment accelerated in the second quarter. In June, move-ins averaged 2.6% of inventory, whereas the pace of move-outs averaged 1.6%.
For assisted living, move-ins remained unchanged, averaging 3.1% in the second quarter compared with 3.2% in the first quarter. Move-ins in memory care averaged 3.6% in the second quarter compared with 3.7% in the first quarter.
The NIC MAP Vision Seniors Housing Actual Rates Report provides aggregate national data from 300,000 units within more than 2,700 properties operated by 35 to 40 senior living providers.
