Independent Living Now Holds Pricing Power Over Assisted Living, Memory Care

Senior living pricing is no longer uniform as staff turnover, unit affordability, and “the balance between choice and care necessity” continue to shape the industry.

That’s according to a new report from the National Investment Center for Seniors Housing and Care (NIC).

As of June, operators with independent living raised asking rates 6.7% while growing in-place rents by 8.1% in 2025 compared to 2024. By comparison, operators with assisted living raised asking rents 5.9% and in-place rates by 5.5% between 2024 and 2025.

“Historically, we’ve seen more uniform rate growth across the continuum,” Zahraoui told Senior Housing News. “What stands out in 2025 is the divergence, with IL surging to record-high initial rent growth while AL and MC are experiencing widening discounts.”

According to Zahraou, independent living initial rates increased 16.9% in 2025 compared to 2024. 

The number of independent living discounts also decreased in that time. NIC data shows move-in rates priced $298 below asking rates representing a little under one month. In 2024, independent living discounts registered at $634, or the equivalent of 1.8 months of rent.

“Independent living, which is often a lifestyle choice, is showing the strongest initial rent growth and the lowest reliance on concessions, signaling both demand strength and consumer willingness to pay,” Zahraoui said.

However, assisted living discounts increased compared to last year at $673, or 1.2 months, compared to one month. 

Memory care operators grew asking rents by 5.1% between June 2024 and June 2025 and increased initial rates by 2.2% in that time, which NIC notes as less than half of the pace of the previous year. Memory care operators enacted an average of $898 in discounts, or 1.2 months of rent.

The median stay in memory care is around 18 months, significantly shorter than the 25 months seen in assisted living and 27 months seen in independent living, with high turnover leading to the deeper discounts, according to NIC.

All sectors remained positive in their rate changes, and move-ins exceeded move-outs for the 17th consecutive month.

“This shift reflects both the positioning of IL as a lifestyle product and potential affordability challenges in need-based care. It’s a reminder that operators need different pricing and concession strategies by segment, rather than assuming one trend applies across the board,” Zahroui said.

The post Independent Living Now Holds Pricing Power Over Assisted Living, Memory Care appeared first on Senior Housing News.