Seniors Housing Rates: Actual vs. Asking

For years, NIC MAP has been presenting quarterly changes in seniors housing asking rates, but it is now trying to get beyond that and get the actual rental rates. That will add a lot more needed transparency.

As many of you know, NIC is working hard to develop its database of actual rents in seniors housing as opposed to the “asking” rents that have been used in their NIC Map numbers for years. This is very important because not until the market sees the actual rents communities are getting will we have a better understanding of the extent of price discounting in various markets. 

We have been a little vocal about the asking rent number because when times are tough, like they have been for many providers the past several years, what you want to get in rent can be meaningless if you are always giving something up, whether it is a free month’s rent, a discount for the full year or fixing the price for the first two years. 

If we are at a bottom for occupancy, and I hope we are, then what better way to confirm that the market is strengthening than to see if the actual rents providers are getting are increasing as census grows. If not, then we will know that they are sacrificing rate for occupancy, which is not always a bad thing.

So, please help NIC out when they ask for your real numbers. Actual rates are transparent, asking rates are not, and investors want transparency.  

 

3 comments on “Seniors Housing Rates: Actual vs. Asking

  1. What’s the possibility that honesty will prevail?

    Personally, lately I’ve been skeptical of the self-reported NIC data. When we look at occupancy (for example), it’s surprisingly higher in some markets than what most operators are running.

    Honesty prevails among friends, and if you have enough friends (including trends for earnings reports), you find the NIC data doesn’t match in some (many) markets. I’m pro-transparency for actual rates. This was more a comment of the reliance on self-reported data.

    1. Well, that is always the risk with self reporting, but since it is basically anonymous, there should be no need to inflate their numbers. And a lot of providers in individual markets will differ with some of the NIC numbers on occupancy.

  2. Happy New Year and thanks for your great reporting, Along with self-reporting, channel stuffing (see MDXG) and booking leases as sales are along the continuum underlying the arguments against quarterly earnings’ reporting pressure.
    And to make college sports meaningful, lets reward all the Division I, II,III national champions’ schools will a year of student loan forgiveness for the graduating class. That’s like an old Lee Trevino story, paraphrasing, that “pressure is playing for your own money.”

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