Q2-2024 Market Survey Analysis: Concessions

In Quarter-2 of 2024, BILD conducted over 100+ individual Market Surveys on senior living communities across the nation. Below is the executive summary and the data trends that were uncovered regarding concessions, community fees, and rate increases within those senior living communities shopped.

Target Regions: U.S Market Areas (percent of shops) – East Central (32%), West Central (1%), Pacific (28%), South Atlantic (34%), Mountain (1%), New England (3%)
Target States: AL, CA, FL, IL, IN, KY, MA, MD, MI, MO, NV, OH, TN, VA
Time Periods Data Analyzed: 4/1/2024 – 6/30/2024

The most common discount communities were offering:

• No specials offered Q1(63%), Q2(57%).
• Reduce/discount rent Q1(11%), Q2(15%).
• Waive/reduce community fee Q1(9%), Q2(11%).
• Others: veterans, signature clubs Q1(8%), Q2(5%).

The 2023 average community fee ($2,899) is higher than the 2022 average of $2,551. While Q1-2024, the average community fee was $4,152, and since then has dropped in Q2-2024 to $3,582.
In 2022 the average rate increase was 3.93% and in 2023 there was a slightly higher average rate increase of 4.02%. In Q1-2024, rates increased to an average of 4.21% and have continued to increase to an average of 4.6% during Q2-2024.

Overall Concession Trends

• Out of the communities that waived or reduced the community fee, 36% of communities offered 45%-75% off the community fee. While 20% of locations offered to waive 100% of the community fee.
• Reducing rent would typically last 1-3 months but a few reduced rent up to 12-24 months. Most commonly up to 2 months of rent would be reduced. Rent reductions went as high as $3,000 and averaged $1,556 per month.
• Other concessions: veterans discounts (avg. 25%), founders programs (avg. $5,600 off per month), move in fees discounted ($3,400), second person fees discounted (avg. $5,759 off for 1-3 months).

Overall Community Fee Trends

• The most common community fee in Q2-2024 ranges between $2,575 and $3,900.
• The highest community fee analyzed was $15,500 (not CCRC) while the lowest community fee (excluding $0) was $100.
• The overall median community fee price was $3,000.

Overall Rate Increases Trends

• The most common rate increases range between 5-5.9%, which is an average of 2% higher than Q1-2024.
• The highest rate increase seen was 10%. Other than a 0% rate increase, the next lowest increase was 1%.
• The overall median rate increase was 5% and the average was 4.6%. This reflects a 0.6% increase compared to 2023 and a 0.39% increase since Q1-2024.