NIC recently published a blog post on continuing care retirement community (CCRC) performance in the 4th quarter of 2024, comparing entrance fee vs rental CCRCs. The findings are the result of a recent analysis of 571 entrance fee and 488 rental CCRCs in the 99 NIC MAP primary and secondary markets.    

Entrance fee CCRCs maintained higher occupancy than rental CCRCs across all care segments, the analysis found. Rental CCRCs, however, experienced higher year-over-year occupancy growth than entrance fee CCRCs.

Specifically, the occupancy rate for entrance fee CCRCs increased to 91.3%, 3.2 percentage points (pps) higher than rental CCRCs (88.1%) and 5.5 pps higher than non-CCRCs (85.8%). Compared to year-earlier levels, rental CCRC occupancy has increased by 2.1 pps while entrance fee CCRCs saw a growth in occupancy rate of 1.1 pps.

The difference in occupancy rates between entrance fee CCRCs and rental CCRCs was largest in the independent living segment (3.0 pps), followed by nursing care (1.1 pps), and assisted living (1.0 pps), with the smallest gap in the memory care segment (0.8 pps).

The monthly average asking rent for entrance fee CCRCs across all care segments remained higher than rental CCRCs. Rental CCRCs showed higher year-over-year rent growth in assisted living (4.9% to $6,179), memory care (5.0% to $7,874), and nursing care (4.6% to $395) segments.

These and other insights are available in a blog post and related reports.

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