Low Occupancy Prompts Price Discounts in Senior Living — But Providers Wary of Risks

Senior living providers recovering from the pandemic are using discounts and concessions to regain occupancy, raising concerns about price wars as companies across the industry strive to rebuild occupancy.

In November 2020, providers such as Five Star Senior Living (NYSE: FVE) were already observing deep discounts and concessions in the market. Other data, including mystery shops and a reader survey recently conducted by Senior Housing News, also find many organizations utilizing price breaks of various kinds.

With regard to occupancy, top operational executives see two emerging trends that give them hope for the future: the growing rate of vaccinations in senior living, and upticks in new sales leads at the beginning of this year signaling pent-up demand.