During the second quarter of 2024, the move-in rates for independent living showed a significant slowdown compared to the previous year. Additionally, the rate of discounting has increased, reaching new highs across all care types according to a NIC MAP Vision Actual Rates report. Independent living operators reported the steepest discounts, with average discounts of about 16% and an equivalent of 2.1 months of “free rent.” Assisted living and memory care communities also experienced high discounts in the second quarter.
Despite the occupancy gains in independent living across the 31 markets tracked by the organization, the annual growth for initial move-in rates in independent living was negative at 0.1% in June. This is a notable decrease from previous years. Assisted living and memory care communities also saw a drop in initial rate growth compared to previous years.
Operators are recognizing the need to reset rates in 2024 to address affordability concerns and customer perceptions. While discounts can help increase occupancy, some operators are cautious about devaluing their communities and affecting long-term financial viability. Affordability remains a key topic of discussion in the senior living industry in 2024, with scrutiny from both Congress and the media.
