Occupancy in senior housing has continued to grow, surpassing 85% in the fourth quarter of 2023. This marks the industry’s 10th consecutive quarter of occupancy growth since the beginning of the pandemic, according to the latest data from NIC MAP Vision released on Jan. 11.
In NIC MAP’s 31 primary markets, occupancy rates increased to 85.1% in the fourth quarter of 2023, up from 84.3% in the previous quarter. The growth was driven by record-high rates of demand, with a projection that the industry could return to pre-pandemic occupancy levels by 2024.
Assisted living operators in NIC MAP’s 68 secondary markets have already fully recovered and exceeded pre-pandemic occupancy. The data also reveals that Boston, Baltimore, and Minneapolis had the highest occupancy rates in the fourth quarter, while Houston, Atlanta, and Las Vegas had the lowest rates.
Despite the growth in occupancy, new senior living community openings have slowed due to higher costs of capital, lending issues, and pandemic-related supply chain problems and labor shortages. However, needs-driven demand for assisted living has remained strong.
