The pace of senior living move-ins today exceeds pre-pandemic levels due to what data experts are calling a “testament to the adaptability” of communities to implement infection control measures and enable safe visitation.
Using data from senior living sales enablement platform Sherpa, Vice President of Research and Analytics Lana Peck, formerly a senior principal with the National Investment Center for Seniors Housing & Care, identified trends in senior living move-ins and move-outs during the third quarter in a Tempo report.
The report includes data from Sherpa clients representing almost 150,000 total units in 820 cities in assisted living, independent living, memory care and continuing care retirement / life plan communities.
Move-outs fall back to pre-pandemic levels
As admission moratoriums, fear and uncertainty around COVID-19 accelerated move-outs and significantly slowed move-ins at the beginning of the pandemic, average senior housing move-ins per community were 13.2 in the third quarter — up from six in the second quarter 2020.
Peck called the turnaround “a testament to the adaptability of communities to employ virus mitigation and safe visitation measures before the vaccine became available.”
Looking at its own clients, Sherpa found occupancy increased 3 percentage points for CCRC units, 9 percentage points for independent living, 11 percentage points for assisted living and 13 percentage points for memory care units. CCRC unit occupancy, they said, remained considerably higher than other care types since before the pandemic.
The pace of move-ins was faster for assisted living units throughout the pandemic. Move-ins increased faster for independent living and continuing care retirement community units after the COVID-19 vaccine became available, according to Peck.
Move-outs attributed to resident deaths increased during the pandemic, but fell back to pre-pandemic levels in the third quarter. Recent trends for move-outs due to dissatisfaction or location are small, but slightly higher than pre-pandemic levels.
Lead times varied by care type
Average days from initial inquiry to move-in for independent living units has trended “considerably faster” since the pandemic. Peck attributed that to sales counselors working fewer high-quality leads deeper with more success, improved readiness of prospective residents due to pandemic isolation, robust home sales, higher costs and availability of consumer goods and services, pent-up demand and Social Security increases.
Assisted living leads increased time to move-in during the pandemic, while memory care remained relatively flat after an initial incase.
Although many operators have raised rates — some by double digits — to recoup revenue losses, many continue to be stressed by wage and expense growth and staff turnover.
Some operators reduced sales and marketing staff members and cut budgets. Others engaged in speed-to-lead sales tactics. Although that tactic can be effective, Peck warned that it also can increase the population of high-needs residents quickly.
“This trend jeopardizes a community’s ability to attract higher-functioning residents, resulting in shorter lengths of stays and unpredictable revenue streams,” she wrote.
Peck recommended simple adjustments to save money and drive positive results, including separating sales and market tasks, delegating non-selling responsibilities to junior staff, generating fewer leads and minimizing dependence on marketing automation in favor of professionalizing the sales process.
