With continued improvement in occupancy, assisted living’s recovery moves forward. In the third quarter of 2012, assisted living occupancy was 88.8 percent, which is an increase of 20 basis points from the prior quarter and 170 basis points above the cyclical low established in second quarter 2009. Absorption continued to remain strong, with the number of occupied units increasing by 0.9 percent in third quarter 2012. Inventory growth remained tempered, growing by 0.6 percent in the third quarter.
The pace of year-over-year asking rent growth during the third quarter continued to remain positive at 1.6 percent, which is an increase of 20 basis points from that of the second quarter. As of third quarter 2012, asking monthly rents across assisted living properties within the top 31 metropolitan markets averaged $3,619.