2022 in Rewind: What’s Ahead for Senior Living in 2023?
As we reflect on what 2022 meant to the senior living industry, it’s safe to say that it was another year of change and challenges. From inflation and a recession to labor woes, the industry once again proved how resilient it can be. Industry experts predict another year of ‘operational challenges’ as increasing operating expenses plague facilities across the country.
If you’ve followed along with the Sherman & Roylance team this year, you may recall co-founder John Sherman calling out labor challenges as an ongoing concern - namely recruiting and retaining staff. This has become a major problem for many skilled nursing facilities (SNFs), as the availability of appropriately trained staff is an issue. However, Q3 numbers tell us occupancy is up and new housing models like experiential living are taking the industry by storm, setting the stage for a prosperous 2023.
2023 is sure to be another pivotal year for the senior housing industry. With new approaches to overall operations and the transition to active adult communities on the rise, expectations are high. The Sherman & Roylance team looks forward to assisting with all your senior living investment, valuation, or analysis needs. Here’s to a prosperous, successful, and exciting year. Looking forward to seeing you all at the Spring NIC Conference in San Diego!
If you’ve followed along with the Sherman & Roylance team this year, you may recall co-founder John Sherman calling out labor challenges as an ongoing concern - namely recruiting and retaining staff. This has become a major problem for many skilled nursing facilities (SNFs), as the availability of appropriately trained staff is an issue. However, Q3 numbers tell us occupancy is up and new housing models like experiential living are taking the industry by storm, setting the stage for a prosperous 2023.
2023 Predictions: Change is On the Way
Looking ahead to 2023, here are some of the top trends we expect to shape the industry:- Seniors are prioritizing wellness, experiences, and an active lifestyle - This one certainly isn’t new, but it will continue to shape senior living. Baby Boomers are seeking different experiences than generations before, drawing them to communities that provide both programs and technology that support a higher quality of life.
- Technology and new services spark growth - Technology has played a major role in the senior housing sector since the pandemic. Heading into 2023, we expect these offerings to continue to evolve and inspire where the industry is going.
- Occupancy rates are up - As mentioned, the end of 2022 saw great strides as far as occupancy goes. According to the NIC’s Map Vision, senior housing occupancy was at 82.2% at the close of Q3, which is a nearly 5% increase from the pandemic low.
- Staff recruitment will continue to be a factor - Operators across senior housing will continue to face labor shortages and difficulties finding and retaining good staff. Furthermore, this may impact operator margins and returns.
2023 is sure to be another pivotal year for the senior housing industry. With new approaches to overall operations and the transition to active adult communities on the rise, expectations are high. The Sherman & Roylance team looks forward to assisting with all your senior living investment, valuation, or analysis needs. Here’s to a prosperous, successful, and exciting year. Looking forward to seeing you all at the Spring NIC Conference in San Diego!