The latest LPC Occupancy report from Chicago-based investment bank Ziegler reveals that occupancy in life plan communities (LPCs) is on the rise, with memory care units showing the strongest growth over the last quarter.
Based on data from 1,164 not-for-profit and for-profit LPCs in 140 markets across the U.S., the report highlights that independent living maintains the highest occupancy at 91.1% in the second quarter, with a 0.1 percentage point increase from the previous quarter. The memory care segment saw an impressive 1% increase from the first quarter and a notable 3.7% growth year over year, reaching 89.7%.
Overall LPC occupancy has also increased by 0.2 percentage points from the first quarter to the second quarter. Entrance fee agreements are associated with higher occupancy rates, currently at 90.5% compared to the 87.1% in rental agreements. Not-for-profit LPCs are outperforming for-profit communities, boasting 90% occupancy compared to 87.2%.
The report highlights the significance of tracking monthly rents, with the assisted living and memory care segments experiencing the largest year-over-year increases at 4.6% and 4.2% respectively, followed by independent living at 3.7%. These increases, although lower than previous highs influenced by inflationary pressures, indicate positive trends in LPC occupancy.
