Inside of the top 10 construction markets for senior housing there are over 25,000 assisted living and independent living units being built, based on a report from Marcus and Millichap, a real estate brokerage and investment service.
California based firm, Calabasas, managed to analyze data from the NIC or National Investment Center on Senior care and housing to learn more. According to the data, the top 10 markets when it comes to how many units are under construction are as follows:
- Houston: 1800
- Minneapolis/St. Paul: 1900
- Los Angeles: 2000
- Philadelphia: 2100
- Washington D.C.: 2200
- Chicago: 2600
- Phoenix: 2900
- Atlanta: 3100
- Dallas/Fort Worth: 3300
- New York City: 3800
There are some areas where there has been overbuilding within the United States and has caused an imbalance in supply and demand. This has been reflected in the low occupancy rates nationwide. However, there are some markets that have done better than others, even within the metropolitan areas that have tons of construction, some sub-markets have even presented new opportunities for brand new developments.
The NIC views Houston to be a high growth market. Even though the Q2 occupancy was at 84% which was the lowest in the top 10, its average 10-year population for Seniors who are 65 and older is 4.5% which is behind Dallas/Fort Worth and Phoenix.
Atlanta, in Q1 has 15% of its inventory under construction, which was the most in the markets that are tracked by the NIC. The extended growth has not been able to impact the occupancy. The occupancy rate for Atlanta was 88%, in Q2, based on the report.
The occupancy rate of New York was at 93% which made it the top field for the markets that were listed.
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