We’ve learned from the pandemic that the future can change on a dime. Yet, we are always looking ahead in an effort to proactively anticipate what we will face. For the senior living industry, there are some knowns and unknowns worth considering as we look ahead:
- Occupancy hasn’t bounced back as much as we hoped. In the third quarter of this year, occupancy was almost 80.1%, compared with nearly 82.1% during the same time last year.
- Despite the pandemic, building has continued. About 42,000 new housing units came online in larger markets during the first quarter of 2021 alone.
- After some hesitancy due to the pandemic, older adults are renewing their interest in senior living. As a result, the majority of senior housing communities experienced an increase in occupancy in the second quarter of 2021.
- Operating costs increased due to problems such as rising labor and supply costs. However, higher rental rates on renewals helped offset these expenses.
- Growing labor costs and staffing shortages continue to be a problem, and many senior living and long-term care operators say they’ve had to cut back on admissions.
