One-half of respondents (52%) in Wave 36 anticipate their organization’s operating margins will improve in the next six months. One-third (32%) expect a 1% to 5% increase, and an increasing share (16%) anticipates growth between 6% and 10%. However, labor costs will continue to be a mitigating factor. Nearly all respondents since July have been paying staff overtime, and the use of expensive agency/temp staff is growing, with nine out of ten organizations (89%) now tapping agency/temp staff.
In the Wave 35 survey, nearly half of organizations with multiple properties (45%) reported staff shortages in all their properties—up from roughly one-third (30%) in the Wave 24 survey conducted mid-March. While attracting community and caregiving staff remains a significant challenge, the percentage of organizations citing staff turnover increased from about one-half (53%) to more than two-thirds (70%) since mid-June.
“Lead volumes are improving. In Wave 34 of the survey, one-third of organizations report lead volumes reaching pre-pandemic levels (33%), up from just one-fifth back in April 2021 (20%). During the pandemic new construction lending had slowed sharply. A recent increase in construction lending is reflected in the Wave 34 survey where 41% of respondent organizations now expect their development pipelines to increase.
"In the Wave 33 survey, roughly 50% of respondents with senior living residences report that the pace of move-ins accelerated in the past 30-days—a notable increase from the prior survey. The shift was smaller for nursing care. Increased resident demand was the primary reason for acceleration in move-ins. Operators have suffered pandemic-related vacancies and myriad unplanned expenses and NOI has been pressured.