Why Senior Living Operators’ ‘Real Test’ in Occupancy is Soon to Come

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Senior living operators are especially optimistic about the prospect of further occupancy growth in the coming year, at least according to their public comments. But as promising as 2024 seems, I think senior living operators still have a substantial hill left to climb and therefore should not assume that occupancy gains are a given – or that they can be achieved without compromises to the bottom line.

There are plenty of reasons to be optimistic. Average senior living occupancy has steadily risen over the last two years, with an expectation that operators in the country’s largest senior living markets will regain pre-pandemic levels within a year. That is not to mention the fact that the senior living industry is making progress on expenses and staffing, driving up margins as the outlook improves.