November 9, 2026

Senior housing is posting occupancy numbers the sector has rarely seen. NIC MAP reports that average occupancy across its 31 primary markets reached 90.4 percent in the third quarter of 2026, up 60 basis points from the prior quarter. (A basis point is one hundredth of a percentage point.) It was the 21st consecutive quarter of improvement, and occupancy is up 180 basis points from a year earlier. seniorhousingnewsirei

Why supply matters

NIC MAP estimates the industry is on track to build about 10,445 units per year, while meeting demand would take more than 100,000 units annually through the 2030s. On the demand side, the first baby boomers turn 80 in 2026, the age the industry uses to mark the front edge of senior housing demand. seniorhousingnewsirei

Why averages are not property values

A national or metro average is context, not evidence for a specific property. For example, 16 of the 31 primary markets are at 90 percent occupancy or higher, which means 15 are not. Local supply, the operator, and the property itself still decide the outcome. seniorhousingnews

What appraisers weigh

Senior housing combines real estate with an operating business, so valuation looks at both. Common questions include:

  1. Is the property stabilized, and how has occupancy trended?
  2. What is the operator’s track record?
  3. What is the mix of independent living, assisted living, and memory care?
  4. How do rates, expenses, and labor costs affect income?
  5. How much new supply is planned nearby?
  6. How much of the value belongs to the real estate rather than the business?

Higher occupancy does not automatically mean higher value. Financing costs and capitalization rates still matter, as we explained in our post on <a href=”https://teelvg.com/cap-rates-interest-rates-fed-2026/”>cap rates and interest rates</a>.

nior Housing News, “More Than Half of Primary Markets Have 90% Average Senior Living Occupancy Or Higher” (https://seniorhousingnews.com/2026/10/01/more-than-half-of-primary-markets-have-90-average-senior-living-occupancy-or-higher/); IREI, “Senior Housing Occupancy Clears 90% as New Supply Stalls” (https://irei.com/publications/article/senior-housing-occupancy-clears-90-as-new-supply-stalls/).