The average price per unit in assisted living fell 30% from 2019 to 2020, driven by the sale of numerous “lower-quality” assisted living communities, according to new data from Irving Levin Associates.
The average per-unit price in assisted living decreased from $248,400 in 2019 to $174,700 in 2020.
Meanwhile, according to the data, independent living saw a more modest decrease in average price per unit during the coronavirus pandemic, going from $233,600 in 2019 to $232,500 in 2020.
“Compared with independent living, the assisted living sector was generally in worse shape going into the pandemic, with existing census, rent discounting and labor issues stemming from overdevelopment only getting worse,” said Ben Swett, editor of Irving Levin Associates’ Senior Care Acquisition Report, 26th Edition.
Combined, the average price per unit for senior living communities — including both independent and assisted living communities — fell 20% to $196,200 per unit in 2020 compared with the average in 2019, according to the company.
Across the entire long-term care continuum, data show, deal volume fell 22% from 2019, when there were a record-high 453 publicly announced transactions, to 2020, when there were 352 publicly announced deals. According to publicly disclosed prices, dollar volume also declined by more than 50% from 2019 to 2020, going from $16.95 billion in 2019 to $7.9 billion in 2020.
