02 Aug The Outlook for the Residential Assisted Living Market
A message from Brian Pinkowski, President of Residential Assisted Living National Association
Residential assisted living is very sensitive to vacancy rates.
Our members are primarily 6-19 bed residential assisted living homes. The impact of that one missing resident on a member’s RAL business is significant and a matter for increased scrutiny of the marketing programs.
- The absence of a single resident in a 100 bed assisted living facility is 1%.
- The absence of a single resident in a 6 bed home is 16.6%.
When I look over the market summaries from the National Investment Center reporting a 0.3% decrease in occupancy in the assisted living sector, I pause. What does that really mean for the 22,000 RAL homes we represent?
A few facts come to mind as I consider this question:
- The number of seniors is increasing significantly each day.
- The National Investment Center seems to focus on the large senior facilities.
- The percentage of seniors with dementia and other mental illnesses is increasing.
- Smaller assisted living residences provide a larger percentage of care for residents with dementia than larger facilities.
- Niche services providers in the assisted living market are getting increased attention.
With these facts in mind our team has discussed the need for data from the smaller, residential assisted living homes.
Our members need to know how their segment of the assisted living market compares as they seek funding, expansion, or the sale of their RAL home.
In our commitment to serve this community we are going to find answers to these and many more concerns facing RAL owners. We will be surveying the more than 22,000 residential assisted living homes and businesses.
And the 22,000 residential assisted living homes will be hearing from us on this point regularly as we go forward.
Expect to hear from us soon!
Brian J. Pinkowski, Esq.
Residential Assisted Living National Association