A new year always brings new challenges and opportunities, and 2024 will be no different for the senior living industry. Despite a tough year in 2023, the industry is optimistic about the prospects of the year ahead.
As 2024 begins, the industry is seeing positive momentum in occupancy levels, with hopes of regaining pre-pandemic numbers by the end of the year. Additionally, there is excitement about the relatively low rate of new construction starts and the anticipated demand from the baby boomer generation, offering the potential for continued occupancy gains into 2025 and beyond.
However, challenges such as staffing, expenses, and increased scrutiny from the media and public are expected to remain. Innovation and evolution will continue to be important for operators to stay competitive. The influx of new entrants into the industry, combined with advancements in technology including AI, are likely to gradually transform the senior living landscape in the year ahead.
The senior living sector is experiencing a “great rebalancing,” with assisted living poised to overtake independent living as the most prevalent offering. The influx of needs-based demand in the post-pandemic era has contributed to the accelerated growth of assisted living occupancy, with some operators already reaching pre-pandemic levels.
As the pandemic recovery period comes to a close and the focus shifts towards the future, the industry is presented with an opportunity to capture the growing demand from the older adult population, with nearly 60% of respondents to a survey considering a move to a senior living community within the next four years.
Operators will need to adapt to the changing preferences of the baby boomer generation, as well as maintain rates and margins while adding residents. It is anticipated that operators will continue to offer discounts and concessions to attract residents, but the challenge will be to do so while maintaining financial targets and quality of service.
Luxury senior living is also expected to continue its upward trend, with a focus on providing a higher quality of service to accommodate the growing demand from affluent older adults. Operators are evolving their offerings to cater to the changing preferences and expectations of this demographic, with a focus on lifestyle and quality of service.
