Q3 Closes with Occupancy Recovery In Sight
Senior housing experts remain optimistic following the Q3 report from the National Investment Center for Seniors Housing & Care (NIC). The go-to resource for key senior housing trends, the NIC’s Map Vision webinar in mid-October revealed occupancy rates rose by a full percentage in the third quarter of this year. At the end of Q3, senior housing, defined as independent living and assisted living combined, occupancy was at 82.2%, which is a 4.3% increase from the pandemic-low of 77.9%. From September 2022 to October, the market increased by .6%. It is important to point out that assisted living facilities are experiencing more growth than independent living, which speaks to the value these communities bring, especially following the social isolation of the pandemic.
Amid economic uncertainty, labor shortages, and inflation, there’s no question senior housing operators will take all the wins they can. While inventory has yet to reach pre-pandemic levels, experts predict demand will continue, and operators better be ready.
But don’t count independent living out yet.
Operators have the opportunity to reimagine senior living as we knew it by leveraging technology, adopting a whole body wellness approach, and catering to older adults’ desire to socialize and be part of a community. Active adult communities are growing in popularity, so much so that the NIC recently added an Active Adult classification. There is an opportunity for independent living to reassess and embrace new ways to drive value and support residents.
The Sherman & Roylance team continues to keep an eye on the market as inflation rises and housing costs continue to trend upward. Curious about our current inventory or looking to sell a property? Contact one of our experts today and schedule an appointment.
Amid economic uncertainty, labor shortages, and inflation, there’s no question senior housing operators will take all the wins they can. While inventory has yet to reach pre-pandemic levels, experts predict demand will continue, and operators better be ready.
New Classifications, Lifestyle Driving Occupancy
Senior living has undergone a massive transformation over the last couple of years. Not only was the industry one of the first impacted by the pandemic, but older adults have different lifestyle needs than past generations. As mentioned above, assisted living is rising in popularity, as the NIC’s latest occupancy report indicates.But don’t count independent living out yet.
Operators have the opportunity to reimagine senior living as we knew it by leveraging technology, adopting a whole body wellness approach, and catering to older adults’ desire to socialize and be part of a community. Active adult communities are growing in popularity, so much so that the NIC recently added an Active Adult classification. There is an opportunity for independent living to reassess and embrace new ways to drive value and support residents.
How Will Rate Increases Impact Senior Housing?
With both occupancy and healthcare mergers and acquisitions increasing in Q3, it’s no wonder senior housing operators are hopeful about the future. New construction activity has slowed, but green building projects are changing that. Furthermore, lesser-known markets in the Southeast and PNW - Montana, specifically - are seeing more growth as priorities have shifted and older adults in states such as California are leaving for greener pastures.The Sherman & Roylance team continues to keep an eye on the market as inflation rises and housing costs continue to trend upward. Curious about our current inventory or looking to sell a property? Contact one of our experts today and schedule an appointment.