Senior housing rent is growing the fastest in Charleston, South Carolina.
That’s according to data presented Wednesday at the National Investment Center for Seniors Housing & Care (NIC) Spring Forum in Dallas, by Chief Economist Beth Mace and Senior Principal Lana Peck.
Charleston recorded the highest seniors housing rent growth nationwide between the fourth quarter of 2016 and the fourth quarter of 2017, with rent in that market growing almost 8% year-over-year. The markets with the second- and third-highest seniors housing rent growth during that time period were Augusta, Georgia, and San Jose, California, respectively.
Meanwhile, Colorado Springs, Colorado, recorded the worst rent growth, with rent falling by more than 2% in that market between the fourth quarter of 2016 and the fourth quarter of 2017. A number of other markets, including Salt Lake City, Utah, and Birmingham, Alabama, also recorded negative rent growth during that timeframe.
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Additionally, 19 of the 31 primary markets tracked by NIC saw occupancy declines year-over-year, as of the fourth quarter of 2017, data show. Again, some markets are faring better than others—in San Jose, California, occupancy is up year-over-year and is also near an all-time high at over 95%. In San Antonio, Texas, the opposite is true: occupancy is down year-over-year and, as of the fourth quarter of 2017, is near an all-time low at 78%.
San Antonio is currently experiencing a “significant mismatch” between supply and demand, which is causing its record-low occupancy, according to NIC. Currently, the market has a 12.3% penetration rate and its annual inventory growth stands at 10.1%.
The market-specific data underscores how the senior housing landscape can vary significantly by metro area—a point often emphasized by NIC experts over the last several years, as the industry has been gripped by oversupply concerns.
Written by Mary Kate Nelson