Senior Living Occupancy Recovery a Multi-Year Process

Senior living operators are ‘cautiously optimistic’ as recovering supply chains and other factors continue to positively impact occupancy rates. Over the last several years, we’ve seen the senior housing industry go through monumental changes, some of which have led the industry to become more differentiated and leverage less conventional housing paradigms. Not only are traditional housing models a thing of the past, but aging Boomers are looking for more specialized offerings, including active adult communities and experienced-based environments
At the start of the new year we looked at some of the most anticipated trends for 2023, including changing care models and ongoing challenges as a result of inflation, the recession, and continued labor woes. While it can be easy to get caught up in some of the hurdles facing the industry, it’s important to highlight some of the innovative ways operators have evolved to meet modern demands - and keep occupancy rates moving in the right direction. Furthermore, industry leaders note that getting occupancy rates back to where they were won’t happen overnight, so it’s important to remain optimistic, hopeful, and celebrate the wins along the way.

Forecasting In a Post-Pandemic World 

According to a recent report released by PwC and the Urban Land Institute, senior housing construction reached its lowest point since 2015 and staffing challenges plagued the industry, but the future is bright. The number of challenges and obstacles senior housing has experienced since the pandemic have certainly left a mark, but we like to think for the better.
Senior living communities were forced to remain agile and the industry as a whole underwent an incredible transformation as operators adapted. Good news from the NIC as occupancy holds steady at 83 percent, which is where it was at the close of 2022. While numbers are trending upwards, NIC Map Vision data indicates a 4.1 percent occupancy gap remains. 

Look for Us This Spring! 

Be sure and catch the Sherman & Roylance team at the NIC’s Spring Conference, kicking off March 1st in San Diego. This is a great opportunity to connect with our co-founders and senior investment experts. We encourage you to schedule a meeting or reach out to connect and discuss where the industry is heading, as well as some of our incredible investment opportunities.