Demystifying Senior Housing: Trends and Analysis

We recently launched our Senior Housing product that provides insights on the pricing trends in various markets for Assisted Living, Independent Living and Memory Care options. Below we present a quick overview of some big picture trends, along with insights on various geographical areas.

Following a drop in year-over-year growth during COVID-19, asking rent growth recovered towards the end of 2021.

 

Whereas studio rooms constitute the majority of Memory Care living-option, Assisted Living and Independent Living are mostly offered as 1-bedroom units.

Hence, in order to compare the relative pricing of these living options, we have combined the studio and 1-bedroom options. During the first 6 months of 2023, the average monthly asking rent for Memory Care (studio & 1 bdr) was $7,730, representing premiums of 52% and 74% over Assisted Living and Independent Living, respectively.

 

Assisted Living (AL)

For 1 bed AL units, Bridgeport-Stamford-Norwalk, CT MSA is the most expense in our tracked universe with an average monthly asking rent of $8,019.

Phoenix-Mesa-Scottsdale, AZ MSA, on the other hand, had the lowest asking rent ($2,697) during 1H23.

Independent Living (IL)

For 1 bed IL units, New York-Northern New Jersey-Long Island, NY-NJ-PA MSA is the most expense in our tracked universe with an average monthly asking rent of $6,902.

Tyler, TX MSA, on the other hand, had the lowest asking rent ($2,523) during 1H23.

Memory Care (MC)

For Studio & 1 Bdr MC units, Ann Arbor MI MSA had the highest asking rent of $10,695 during 1H2023.

During the same time, Knoxville, TN MSA was the most cost-effective location with an average asking rent of $4,852.

Please note that the Senior Housing sector lacks transparency as pricing is not available online for most facilities. Our tracking sample size is fairly small - currently 100+ facilities of the ~30k facilities across the US.