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Monthly fees for independent living residents increased at a higher rate than in previous years, and they are higher than predictions made last year, according to respondents to a survey by specialty investment bank Ziegler and the National Investment Center for Seniors Housing & Care. 

The annual poll on resident monthly fee increases traditionally takes place in September. This time, however, Ziegler decided to gather feedback for a few more months ‘to better capture what has been an unusual financial year for providers.” Respondents included 230 not-for-profit senior living chief financial officers and financial professionals from around the country, with 62% representing single-site organizations and 38% with multi-site organizations. The survey focused solely on questions about independent living communities.

In last year’s survey, participants were asked by how much they expected to raise their

fees in 2022. On average, they said they expected to increase monthly fees by 3.71%. In actuality, those fees have increased, on average, by 4.43%.

“This increase was among the highest in many years but was necessary to ensure continued financial stability while facing staffing and inflationary pressure,” one respondent said.

Monthly fee increases by region also were higher than predicted in September. Ziegler found that:

  • In the Northeast, predicted increases were 3.41% compared with actual increases averaging 4%.
  • In the Midwest, predicted increases were 3.91% compared with actual increases averaging 4.45%.
  • In the South, predicted increases were 3.96% compared with actual increases averaging 4.4%.
  • In the West, predicted increases were 3.94% compared with actual increases averaging 5.66%.

Inflation and workforce challenges were prime concerns expressed by survey respondents in the new survey, who said they might need to increase monthly fees even more as the year goes on. Current increases might not be enough, they said, in light of inflationary pressures and pressure to increase wages.

One respondent said the organization had to increase monthly fees to offset a planned 5% wage increase across the campus. “We went with a much higher rate than normal in order to cover the costs associated with wage increases for frontline workers,” another respondent said.