The CCRC market continues to lead all other sectors in its occupancy recovery, post-pandemic. Yes, we are talking about a smaller market, and many of these communities tend to be higher-end, luxury properties mostly in primary markets that have generally demonstrated better resilience in recent years. But the sector has not always been the bright spot in seniors housing, especially after the Great Financial Crisis, so this is new territory.
Ziegler and NIC MAP partnered on a report detailing the occupancy gains in each CCRC segment for more than 1,160 CCRCs, including not-for-profit and for-profit, plus entrance-fee and rentals in 140 MSAs. Independent living was the highest, averaging 91.0% in the first quarter of 2024, or 1.1% higher than Q1:23. The other sectors, albeit lower occupied, posted larger gains, year over year. Assisted living went from 86.1% in Q1:23 to 88.9% in Q1:24. Memory care rose even more drastically from 85.3% to 88.7%, quarter over quarter. Skilled nursing, meanwhile, rose 2% to 85.1%. And there was a meaningful difference in occupancy between entrance-fee and rental models, averaging 90.6% and 86.6%, respectively.
And, CCRCs exceed the non-CCRC occupancy in each segment, with the greatest gap being IL, at 5.7% above non-CCRC IL occupancy. More good news for CCRCs is that they appear to be expanding with additional IL units (with an eye toward attracting baby boomers) while also shrinking their skilled nursing units. So the asset class could grow even more attractive, especially as new construction is limited for large, entrance-fee campuses.
