LOS ANGELES: A care housing demand report suggests there are growing concerns about absorption rates in the seniors housing sector.
Last quarter occupancy in the seniors housing sector pointed to a surprising level of weak absorption. In Q1 the average occupancy rate for seniors housing properties dropped by 0.2 percentage points to 90.2% from the prior quarter, and that occupancy rates for majority assisted living properties slipped to 88.7%, down 60 basis points from 89.3% in the fourth quarter and 20 basis points from 88.9% in the first quarter of 2014.
“The absorption numbers were a surprise juxtaposed to generally favorable economic trends and were a contrast to recent trends where absorption had been very strong,” said…