Fresh data from the “4Q 2024 NIC MAP Actual Rates Report” reveal a notable shift in how senior housing operators are pricing independent living (IL) and assisted living (AL) properties, as reported in a blog by NIC analyst Omar Zahraoui. As 2024 wrapped up, IL properties pushed rates higher while easing up on discounts, but AL properties took the opposite route—slower rate growth and heavier discounting.

This is in contrast to past years, when IL operators leaned on discounts to fill units. Now, December 2024 data suggest that IL communities are regaining control over pricing. Meanwhile, AL operators face growing pressure as affordability concerns and rising care costs squeeze margins.

“Going into 2025 and as care costs continue to rise, price sensitivity in AL is increasing, leading operators to recognize that IL and AL require distinct pricing strategies,” Zahraoui wrote. “IL properties can capitalize on rate elasticity due to their choice-based nature, while AL operators need to navigate the affordability equation strategically to maintain occupancy growth momentum while preserving financial health.”

To read the full blog, click here