Through the second quarter of 2013, recovery in Miami’s
seniors housing market fundamentals has been sluggish, despite minimal pressure
from supply. As of the second quarter of 2013, seniors housing occupancy in the
Miami metropolitan market was 86.7%, up 100 basis points since establishing its
cyclical low during the fourth quarter of 2009. Comparatively, occupancy in the
31 largest metropolitan markets (MAP31) was 210 basis points above its cyclical
low as of the second quarter of 2013.
Miami has experienced a slight upswing in absorption
recently, but has suffered from anemic demand for many years. During the past
seven years, Miami has lost a net total of 516 occupied units, which translates
to average annual absorption of -0.4%. Los Angeles was the only other market in
the MAP31 with net loss of occupied units during that time.
During the same period, there has been very little pressure
from new supply, as Miami’s inventory has only increased by 274 units during the
past seven years, translating to annualized growth of only 0.2%. In the
near-term, it is likely that inventory growth will continue to remain muted, as
there was nothing under construction during the second quarter of 2013.
To learn more about Miami, or another market
of interest, please visit NIC MAP