The move toward remote and hybrid work during the pandemic is hurting the long-term care industry and continues to slow recovery, the Wall Street Journal reported.
“Greater flexibility to care for aging parents meant people delayed transitioning them to expensive senior-housing accommodations, for as long as there wasn’t an acute health reason to move them,” John Pawlowski, an analyst at Green Street, told the media outlet.
Green Street noted that the three worst markets for occupancy across congregate settings in the long-term care continuum, relative to before the pandemic, are San Jose, CA, San Francisco and New York. Those cities have high levels of remote work.
At the other end of the spectrum, senior living and care properties have recovered more quickly in the South and Southwest, where remote work is less common, the firm noted.
The reason is simple: Working adults have the flexibility to check on aging parents at home and even coordinate with siblings on a rotating schedule of check-ins. The trend started during the pandemic, but it might be here to stay, according to experts.
Senior living (independent living and assisted living) occupancy marked eight consecutive quarters of increases in the second quarter, but pre-pandemic levels remain elusive, according to NIC MAP Vision data analyzed by the National Investment Center for Seniors Housing & Care and released earlier this month. Geographically, Boston (89.0%), Baltimore (87.5%) and Portland, OR, (86.9%) had the highest IL/AL occupancy rates of the 31 NIC MAP primary markets. Houston (78.7%), Cleveland (80.8%) and Atlanta (80.9%) recorded the lowest occupancy rates. Houston was the only primary market with an occupancy rate lower than 80%.
Occupancy at assisted living communities is recovering faster than occupancy at independent living communities, according to NIC. The organization said the difference likely is due to the more needs-based nature of assisted living.
