The senior living industry is seeing a steady occupancy rebound after two difficult pandemic years, but the factors behind that recovery are not all what people might expect.
Assisted living sees a solid occupancy boost
Recent quarterly data from the National Investment Center for Seniors Housing and Care (NIC) shows that average occupancy across senior living communities rose to 81.4 percent in the second quarter of 2022, marking the fourth consecutive quarter of growth. The assisted living and memory care segment increased to 78.8 percent in Q2, up 1.1 percentage points from Q1. Independent living also improved, reaching 83.9 percent—an increase of 0.7 percentage points.
Despite four straight quarters of improvement, both assisted living and independent living remain below their pre-pandemic occupancy levels of 89.6 percent and 84.7 percent, respectively. Still, the sector is making gradual progress amid ongoing headwinds such as staffing shortages, inflation, and supply chain pressures.
Across the 31 markets NIC tracks, roughly three-quarters of units vacated during the pandemic have now been reoccupied. This recovery has occurred even as communities have raised rents to offset higher operating costs.
CCRCs maintained occupancy despite COVID
Continuing care retirement communities (CCRCs), also called life plan communities, provide a continuum of care including independent living. Data from specialty investment bank Ziegler indicate CCRCs have been slower to return to pre-pandemic occupancy than some other senior housing categories. Ziegler reported CCRC occupancy at 85.7 percent in the fourth quarter of 2021—up 0.3 percentage points from the previous quarter and 1.4 points above pandemic lows seen earlier in 2021.
Those gains are more modest than the increases NIC reported for assisted living/memory care and independent living. That contrast suggests CCRCs may have been better at maintaining occupancy during the pandemic than other sectors. In particular, assisted living and memory care occupancy declined more sharply, creating pent-up demand for higher levels of care as pandemic restrictions eased.
Many CCRCs restricted visitors and in some cases paused new move-ins during the pandemic. These pauses delayed planned relocations and created deferred demand that is now contributing to recent occupancy growth. Beyond delayed move-ins, another important factor appears to be a renewed appreciation for social connection among older adults.
The pandemic’s socialization reality check
The pandemic highlighted how vital social interaction is for many seniors. Prior to vaccines and effective treatments, older adults often isolated to protect their health, sacrificing social contact and routines. That isolation increased loneliness, anxiety, and depression for many, especially those living alone.
Even outside of pandemic conditions, seniors living at home can experience isolation when friends or life partners pass away or when mobility declines. While many express a desire to “age in place,” the pandemic prompted some to reassess and recognize that life in a community—surrounded by peers and regular social activities—may better support their emotional and social needs.
One resident quoted in coverage of this trend summed it up simply: “I just didn’t want to be alone.” She moved to a senior living community and now enjoys access to amenities such as a pool, fitness center, cultural events, trips, and an on-site library, along with daily opportunities to share meals and conversations.
Socialization boosts the appeal of the CCRC
Research highlights the health impacts of social isolation. A 2013 study by University College London found that loneliness combined with infrequent social interaction can shorten lifespan independent of other health factors. That evidence underscores why the social offerings of CCRCs and other senior living communities matter so much.
CCRCs provide structured and informal ways to connect: group meals, classes, fitness programs, lectures, hobby clubs, social hours, and affinity groups. These activities create easy opportunities for friendship and companionship, without pressure to participate. For residents who experienced pandemic-era loneliness, the ability to find someone to chat with or join an activity is a major draw.
As communities continue to welcome residents back, the combination of restored confidence in safety and a deeper awareness of social needs appears to be sustaining occupancy gains. For many older adults, the social life, support, and convenience of a CCRC are proving to be compelling reasons to move—or to return—to community-based living.