The assisted living industry is seeing record sale prices for units overall, according to a new report.
The average per-unit price in assisted living, including memory care, exceeded $196,600 in 2016, the third consecutive year for an increase, according to the report, from Irving Levin Associates.
Boosting the average were about two dozen communities where units sold for more than $300,000 each, with several communities having units going for more than $500,000 each. These transactions offset the effect of the median being at a three-year low of $156,250 per unit.
In independent living communities, the median price per unit exceeded $200,000 for the third consecutive year.
The current bull market for assisted living and independent living began in mid 2010 and took off in 2014, according to the report. “The market is still dominated by assisted living properties, with 3.75 AL buildings sold for every IL building, but IL communities, because of their large average size, represent 40% of the units sold,” the authors noted.
Access the report here.