Senior living operators are still increasing rental rates for residents, but recent data indicates that the rate of these increases is slowing down. LivingPath, a platform that collects data on senior housing communities, analyzed pricing data from 1,700 communities and found that rates are rising 20% to 30% less quickly in 2024 compared to previous years.
According to LivingPath CEO Jonathan Woodrow, there is a continued effort to align resident rates with staffing costs, despite minimal wage increases in most markets since last year. In the first quarter of 2024, rates for various types of accommodations showed moderate increases compared to the previous year.
For instance, a studio apartment in independent living averaged $3,529 per month, up 5.6%; a studio apartment in assisted living averaged $4,678, up 6.6%; and a companion suite in memory care averaged $5,827, up 4.3%. Similarly, rates for a one-bedroom apartment in independent living were $4,092, up 6.4%; in assisted living were $5,721, up 6.5%; and in memory care, a private room was $7,025, up 5.7% in 2024.
While rates are still increasing, the pace of these increases has slowed down compared to previous years, where rates rose between 8% to 10%. This indicates a more sustainable approach to rental rate adjustments in the senior living industry.
