Life plan communities are experiencing an increase in occupancy in 2024, according to a recent report by Ziegler and NIC MAP Vision. The data shows that independent living, assisted living, memory care, and skilled nursing units within these communities have seen a growth in occupancy ranging from 1.1% to 3.4% compared to the previous year. Specifically, memory care has seen the highest increase at 3.4%, followed by assisted living at 2.8%, and independent living at 1.1%.
The report covers 1,164 nonprofit and for-profit life plan communities across 140 markets, revealing that independent living has shown the most improvement since last year, although it has had the slowest growth overall in the senior living continuum. Conversely, assisted living and memory care have consistently seen gains in occupancy.
Overall, the senior living industry has been seeing steady occupancy growth over the past four years, with the average industry occupancy reaching 85.6% in the first quarter of 2024, up from a low of 77.8% in the second quarter of 2021.
Despite challenges in the sector, life plan communities have maintained higher occupancy rates than other assisted living providers in recent years. The report highlights variations in occupancy based on structure, with entrance fee communities reporting higher occupancy rates than rental communities. Additionally, nonprofit communities have shown higher occupancy rates compared to for-profit communities.
However, skilled nursing units within life plan communities have been a challenge, leading some operators to downsize or close these units. The report notes a decline in skilled nursing inventory within life plan communities, despite an increase in overall occupancy.
