There's a 'perfect storm' (of good news) for senior living costs in 2019. Here's why
Families looking to move into a senior care facility can save money and find greater value than two years ago thanks to current economic trends, according to a new study.
Rates for facilities ranging from assisted living to independent living have held steady compared to general inflation and real estate value, per data released Tuesday by A Place for Mom, a national senior living referral service.
Construction of new facilities has also led to lower occupancy rates and stable pricing for senior care home operators, said Sue Johansen, vice president of partner services with A Place for Mom. As competition increases between facilities, Johansen said facilities have pushed to attract residents with deals and options.
"It's still a very good real estate market for most of the country and many seniors who move into senior living are liquidating real estate to do that," Johansen said. "So you're selling at a high time but getting in at a time when rates are pretty stable and promotional activity is aggressive. All of those factors combine to create the perfect storm in terms of timing for families to make that decision."
An interactive map on the referral service's website shows median prices for senior living across the U.S. based on prices families paid between 2012 and 2018.
Nationally, rates for independent living grew 2.6% from 2017 to 2018, bringing the monthly median cost to $2,552 last year. Assisted living grew 2.4% in the same time frame, the data shows, for a monthly median rate of $3,942.
Overall national health spending in comparison grew 4.4% in 2018, according to the Centers for Medicare & Medicaid Services, up from 3.9% growth in 2017.
Seniors and their loved ones considering a transition can use the map and data as planning tools to asses their options, Johansen said.
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"Sometimes in major metropolitan areas, just a move 10 miles away can net you a pretty significant savings: 10, 15, sometimes 20%," she said.
The reported fastest-growing metro markets for independent and assisted living include Minneapolis; Los Angeles; Portland, Oregon; and Charlotte, North Carolina. For seniors interested in facilities in those areas, Johansen suggested preparing sooner rather than later because prices tend to rise rapidly.
For those with children spread out geographically, she said the map may help determine where retirement dollars stretch the furthest.
Regionally, the referral service found senior living costs from 2017 to 2018 increased the most in the western U.S., by 4.3%. The southern U.S. was the only region to see a price decrease, by 1.5%.
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Johansen attributed the changes to overall rental rates and real estate values, as well as labor costs and the locations of new facilities.
A Place for Mom also offers families free advising. Geriatric consulting rates average $74 per hour, according to an AARP survey.
This article originally appeared on USA TODAY: There's a 'perfect storm' (of good news) for senior living costs in 2019. Here's why
