In the first quarter of 2024, senior living operators have slowed down rate increases compared to previous years, with the highest discounts currently in independent living, according to data from NIC MAP Vision released on June 6.
Independent living operators increased resident rates by 4.2% on average in March, a decrease from the 8.1% growth seen in March 2023. Assisted living operators and memory care operators also experienced slower rate increases compared to the previous year.
Omar Zahraoui, principal at NIC, noted that the pace of rate growth in all care segments has decelerated. This trend reflects a strategic approach by operators to remain competitive while also exploring new revenue streams and operational efficiencies.
Discounts to attract new move-ins continue to be prevalent in the senior living industry, with independent living showing the highest average discount at 12.7%. Assisted living and memory care operators also offer discounts to drive occupancy.
Despite the slower rate increases, operators are experiencing a strong pace of move-ins across all care segments, indicating ongoing interest in senior living communities.
