Occupancy in life plan communities (LPCs) is continuing to inch upward, with memory care units showing the greatest growth over the last quarter.
That’s according to the latest LPC Occupancy report from Chicago-based investment bank Ziegler, which included data from 1,164 not-for-profit and for-profit entrance fee and rental life plan communities in 140 markets across the U.S.
According to the report, independent living maintained the highest occupancy in the second quarter at 91.1%, a 0.1 percentage point increase from the previous quarter. The memory care segment, while at 89.7%, increased a full percentage point compared to the first quarter and showed 3.7% growth, year over year.
Overall occupancy within LPCs grew 0.2 percentage points from the first quarter to the second quarter.
Additionally, life plan communities utilizing entrance fee agreements are currently seeing overall better occupancy at 90.5% compared to the 87.1% seen in rental agreements. Not-for-profit LPCs are also performing better than their for-profit counterparts at 90% and 87.2% occupancy respectively.
The report notes monthly rent is an important factor to track as well, noting the largest increases year over year were seen in the assisted living and memory care segments at 4.6% and 4.2% respectively, followed by independent living at 3.7%.
The report’s authors note these increases have lowered from prior record highs caused by inflationary pressures that impacted LPCs.
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