Senior Housing National Report
Occupied Unit Tally Reaches a New Record High
Contrasting supply and demand trends enhance the outlook. Reasons for optimism abound in the senior housing sector, despite a persistent labor shortage and operational cost pressures. According to NIC Map® Data Service, the sector capped off 2022 with the largest number of occupied units in history. After 48,000 units returned to the market from April 2020 through March 2021, about 81,000 units have since been absorbed. This is a testament to the care-based services that senior housing offers, in addition to social elements that many older adults seek after being in isolation. Meanwhile, a resurgence in demand has coincided with a slowdown in construction. Inventory growth during 2022 was the slowest in nine years, and almost 20 percent fewer units were underway entering 2023 relative to the five-year annual average preceding the pandemic. This confluence of returning demand and descending development, paired with longer-term tailwinds from an aging baby boomer cohort, supports a more upbeat sector outlook.