Senior Living Occupancy: Why Marketing Needs a New Approach

The senior living sector stands at a pivotal moment. While projections indicate a surge in demand as baby boomers reach their mid-80s by 2030, today’s operators face a very different reality. With current residents primarily from the Silent Generation, occupancy growth is incremental at best. Marketing strategies that once delivered consistent leads and move-ins now struggle against market saturation, digital advertising inefficiencies, and reliance on expensive third-party aggregators like A Place for Mom.

It’s clear that senior living occupancy and revenue growth require more than the status quo. Executives must embrace a proactive, multifaceted approach to sales, marketing, and operations to navigate today’s challenges and build a foundation for long-term success.

The Current Landscape: A Challenging Crossroads

Over the several years, senior living communities have heavily invested in digital marketing, believing it to be the key to driving leads. However, the market has shifted:

1. Lead Quality and Volume Have Declined

A year ago, a typical 100-unit senior living community might receive 80–100 leads per month. Today, that number has dropped to 60–80. Moreover, these leads are often lower quality, leading to fewer tours and move-ins. This reduction in lead volume and quality has left many communities relying on third-party aggregators like A Place for Mom, which charge up to 100% of a resident’s first month’s rent.

2. Overdependence on Third-Party Aggregators

Many communities now depend on third-party referral services for 30–50% of their move-ins. While these platforms provide a short-term solution, they erode NOI (Net Operating Income) and leave operators vulnerable to fluctuating costs. With no guarantee of long-term residency, the financial impact of this dependency is unsustainable.

3. Marketing Spend is Increasing, but ROI is Stagnating

Digital advertising costs have surged, with monthly marketing budgets creeping from $2,500 to $5,500 or more for many operators. Despite this increased spend, the returns are diminishing. Competing for the same keywords and digital leads as peers in saturated markets has created a costly and inefficient cycle.

Understanding the Buyer Shift

A critical insight for senior living executives is recognizing the changing demographics of the buyer. While current residents are in their late 80s and 90s, the primary decision-makers are often their baby boomer children. These buyers do not view senior living as an immediate necessity but as a potential future option, resulting in delayed decision-making and fewer move-ins.

Moreover, baby boomers demand a different value proposition than their parents. They seek communities that celebrate independence, vitality, and lifestyle, not just care and safety. Marketing strategies must adapt to address these evolving preferences and highlight the unique value of senior living beyond traditional care services.

Why the Current Approach Isn’t Working

The overreliance on digital marketing has inadvertently created a bottleneck. Communities are spending more to capture the same pool of leads, diluting their overall effectiveness. Meanwhile, traditional marketing efforts, such as grassroots campaigns, professional outreach, and resident referral programs, have been largely abandoned—despite their proven ability to close leads faster and more cost-effectively.

Additionally, by focusing almost exclusively on digital channels, operators have lost the ability to stand out locally. With third-party aggregators dominating online search results, communities are often reduced to being just another listing among many, with little opportunity to differentiate their brand.

A Path Forward: Creating a Holistic Marketing Strategy

To drive senior living occupancy and revenue growth, it’s time to rethink how marketing dollars are spent. Here are actionable strategies to regain control, improve lead quality, and increase move-ins:

1. Diversify Your Lead Generation Efforts

A successful senior living marketing strategy should balance digital and traditional channels. While digital marketing is essential, it must be complemented by grassroots efforts, such as:

• Local print and billboard campaigns.
• Direct mail targeting adult children caregivers.
• Professional outreach to healthcare providers and local organizations.
• Resident referral campaigns, which close leads up to four times faster than digital sources.

2. Audit and Optimize Your Marketing Spend

Take a step back to assess which campaigns are delivering real results. Identify the cost-per-lead and cost-per-move-in for each channel, and reallocate budgets accordingly. Eliminating underperforming strategies can free up resources for higher-impact efforts.

3. Reduce Dependency on Third-Party Aggregators

While platforms like A Place for Mom or Caring.com can provide a temporary boost, they should not be the cornerstone of your marketing strategy. By investing in internal lead generation efforts, you can reduce these costly dependencies and retain more revenue.

4. Educate Your Team on KPIs and Market Conditions

Equip your sales and marketing teams with the knowledge and tools they need to make informed decisions. Understanding key performance indicators (KPIs) for lead generation and conversion is critical for ensuring marketing dollars are spent effectively.

5. Focus on Local Market Customization

Each community operates within its own unique market conditions. Tailoring your marketing strategy to address local competition, demographics, and demand will yield better results than a one-size-fits-all approach.

The Opportunity Ahead

While the sector may feel stagnant today, the baby boomer wave is coming. Communities that take proactive steps now to optimize their sales and marketing strategies will be best positioned to capture this future demand. Incremental growth today will lead to exponential growth tomorrow—but only if the right foundation is in place.

As we head into 2025, it’s time for senior living executives to take control of their marketing strategies. This means moving beyond reactive spending and embracing a holistic, data-driven approach that prioritizes quality over quantity, differentiation over saturation, and long-term value over short-term gains.

A Call to Action for Senior Living Leaders

The senior living sector is at a crossroads, but the path forward is clear. By diversifying your lead generation efforts, reducing dependency on third-party aggregators, and tailoring your marketing strategy to local market conditions, you can drive meaningful growth in occupancy and revenue.

If your organization is ready to optimize its marketing strategy and regain control of its lead generation efforts, let’s start the conversation. Schedule a no-obligation assessment of your marketing strategy today and take the first step toward a more profitable and sustainable future. Together, we’ll create a roadmap for success that delivers results in 2025 and beyond.