As demand for senior living grows across the country, the news is generally good, as independent and assisted living markets report their highest number of occupied units since NIC MAP Vision began tracking the data.
Plante Moran Living Forward recently provided construction and senior living mid-year market snapshots in four regional reports: East North Central, Mid-Atlantic, Northeast and Southeast regions. The reports are based on data from NIC MAP Vision.
East North Central region
The East North Central regional includes markets across Illinois, Indiana, Michigan, Ohio and Wisconsin. There, moderate inventory growth is keeping supply in line with demand, as occupancy in independent and assisted living continues to increase with occupied units at an all-time high.
The region’s independent living occupancy continued to increase from its low point of 82% in the first quarter of 2022 to 86.7% in the second quarter of 2024, compared with the national average of 88.4%. Average assisted living occupancy also continued to see an increase from its low point of 75.2% in the second quarter of 2021 to 85.8% in the second quarter of 2024, compared with the national average of 85.6%.
The Midwest has recovered from the pandemic in terms of occupied units; the number of occupied independent living units, at 69,541, and assisted living units, at 68,130.
The second quarter saw a moderate increase in inventory growth, with the region gaining 188 independent living units and 148 assisted living units.
Absorption in the region picked up after slowing down post-pandemic, with the market absorbing 899 independent living units and 850 assisted living units in the second quarter. Today, 1,790 independent living and 1,800 assisted living units are under construction in the region.
Mid-Atlantic region
The Mid-Atlantic region — Kentucky, Maryland, North and South Carolina, Virginia and Washington, DC — saw its occupied units remain at an all-time high. Absorption also picked back up after slowing during the pandemic.
Independent living occupancy (89.6%) remained above the national average (88.4%), recovering from a low of 85.4% in the first quarter of 2021. Assisted living occupancy (85%) increased to just below the national average (85.6%), recovering from a 74% low in the first quarter of 2021.
Occupied units were at an all-time high in the Mid-Atlantic region, with 56,764 occupied independent living units and 39,650 occupied assisted living units as of the second quarter.
The second quarter saw an increase in independent living inventory growth, with the region gaining 525 independent living units, whereas assisted living saw a negligible loss of five assisted living units.
Absorption in the region picked up after slowing down during the pandemic. The market absorbed 526 independent living units and 468 assisted living units in the second quarter. Today, 5,204 independent living units and 2,371 assisted living units are under construction in the region.
Northeast region
Occupancy in the Northeast region — Connecticut, Massachusetts, Maine, New Jersey, Pennsylvania and Rhode Island — has increased steadily since 2021.
The Northeast continued to see independent living occupancy increase from its low point of 87.1% in the second quarter of 2021 to 91.2% in the second quarter of 2024. The average assisted living occupancy also increased from its low point of 76% in the first quarter of 2021 to 86.7% in the second quarter of 2024. Occupancy in both settings rose above the national average in the second quarter.
The Northeast region has recovered from the pandemic in terms of occupied units. In the second quarter, independent living in the Northeast reported 82,629 occupied units, whereas assisted living reported 79,406 occupied units.
The second quarter saw an increase in inventory growth in the region, with a gain of 53 independent living units and 249 assisted living units.
Absorption in the region also picked up after slowing down post-pandemic, with the market absorbing 297 independent living units and 1,020 assisted living units in the second quarter. Today, 1,621 independent living and 1,560 assisted living units are under construction.
Southeast region
In the Southeast — Alabama, Florida, Georgia, Mississippi and Tennessee — independent living lost inventory, whereas assisted living experienced another strong quarter. Absorption was strong in both settings in the second quarter, contributing to occupancy increases.
The Southeast continued to see independent living occupancy steadily increase from its low point of 80.7% in the second quarter of 2021 to 87.2% in the second quarter of 2024. Average assisted living occupancy also increased from its low point of 74.7% in the first quarter of 2021 to 84.8% in the second quarter of 2024. As of this quarter, both independent and assisted living occupancy for the region remain just shy of the national averages.
Although the Southeast region’s occupancy levels sit below the highs reached before the pandemic, the region has recovered in terms of occupied units — 60,396 occupied independent living units and 63,816 occupied assisted living units.
In the second quarter, the Southeast region saw a drop in independent living inventory growth, losing 469 independent living units, whereas assisted living gained 573 units.
Absorption in the region has picked up after slowing post-pandemic, with the market absorbing 444 independent living units and 588 assisted living units in the second quarter. Today, 2,845 independent living and 3,032 assisted living units are under construction in the region.
The Plante Moran report also highlighted that prices for construction materials remain elevated across the nation. Coupled with higher interest rates, those higher prices are leading to more expensive senior living projects across the nation, the experts said.
