The average change in monthly fees charged to existing senior living residents of nonprofit communities this year is 3.05%, the latest data from speciality investment bank Ziegler show, which reveal an increase from the previous year at 2.94%.
The October CFO Hotline poll reflects responses from more than 140 nonprofit senior living CFOs nationwide — the majority of whom work for continuing care retirement communities (CCRCs).
The largest increases in 2014 were among Type-A communities at 3.14% on average, while the smallest increases were among communities with predominantly rental and Type-C contracts, at 2.84% and 2.80% respectively. The average increase across all contract types was higher in 2014 than in 2013.
But, the most predominant contract types are Type A and Type C contracts, with 31.5% and 35.7% of providers offering those types of contracts, respectively.
Looking ahead to 2015, respondents estimated the average percentage by which the organization plans to increase or decrease its monthly fees charged to existing independent living residents was 3.06%. However, Ziegler notes, the projected 2014 figures turned out to be slightly above the actual overall increase for the year — at 3.10% versus 3.05%.
Between the projected monthly fee increases from 2010 and 2015, projected fee increases were the largest in 2010 at 3.23%.
“Some [respondents] noted that within independent living, there is variation in the increase depending on the size of the unit,” Ziegler says in a written statement. “Many mentioned that despite the need for increases, they attempt to stay as competitive as possible in their local market.”
Read the report here.
Written by Cassandra Dowell