First quarter data from NIC MAP shows IL occupancy again exceeding assisted living, but with less new development.
What is it about the independent living community market that keeps occupancy more stable than assisted living, yet sees a much lower level of new development? In the latest NIC MAP data on the first quarter, the IL market outperformed the AL market again, even though IL occupancy did slip a bit sequentially and year over year. I have a hard time understanding why there is not more development in the IL side of the business. Yes, they are larger properties that require more capital and a longer fill time, but it just seems they can be more tailored to any market’s particular needs in terms of services offered. In fact, many are looking more like CCRCs without the skilled nursing and entrance fees. And CCRCs have been performing extremely well lately, but with many communities expanding through additions rather than making the large investment for a new one. Join me next week as I moderate our webinar on investing in the changing but lucrative CCRC and IL market. See you then.