The coronavirus pandemic has been hard on many industries, but it’s been particularly difficult for owners of assisted living facilities and other senior housing communities in Florida. The value of many of these communities dropped significantly, with some prices per unit decreasing as much as 30 percent in 2020 compared to 2019. If you’re interested in purchasing an assisted living facility at this unique time, visit ALF For Sale online today.
How the Pandemic Took A Toll On Assisted Living Facility Prices
With the unique impact that the pandemic took on senior living communities, including independent living communities and assisted living facilities, prices per unit have been dropping significantly. These types of communities were hit particularly hard in terms of cases and deaths related to the coronavirus, so many owners have been looking to divest over the past year.
According to Irving Levin Associates’ latest Senior Care Acquisition Report, the average price per unit for senior living communities across the board was just $196,200 in 2020, a 20 percent decrease from the previous year. This number includes both assisted and independent living facilities across the country.
What Led To The Decrease?
Although the price per unit decreased for both kinds of facilities over the last year, it’s been shown that assisted living facilities were a significant factor in the price drop. In 2019, the average price per unit in an assisted living facility was $248,400. In 2020, however, that number dropped all the way down to $174,700, a 30 percent decrease.
Independent living communities, on the other hand, only saw a marginal decrease. In 2019, the average price per unit was $233,600. In 2020, this number only dropped to $232,500. Considering this data, it’s obvious that assisted living facilities were the true cause of the decrease.
Why Assisted Living Facilities Took A Hit
Due to the number of high-risk individuals living in close quarters in assisted living facilities, using the same common areas, and getting assistance from the same staff members, a large percentage of illnesses and deaths due to the coronavirus occurred in these facilities. This caused some people to pull their parents and loved ones out of assisted living, and significantly fewer people to move their loved ones into these facilities over the past year.
The data here, along with the fact that many owners of assisted living facilities are looking to sell, aligns with other reports that state how the pandemic is causing many operators of small or struggling facilities to sell.
With the recent decline in the price per unit of assisted living and independent living facilities throughout Florida, now is the perfect time to work with ALF for Sale to purchase an assisted living facility! With vaccination rates in the United States increasing day by day and the pandemic on a general downswing, now is the perfect time to invest. To learn more about the possibility of purchasing an assisted living facility at a discount, contact ALF For Sale today.