Life Plan Community Outlook Improving Ahead of 2025 as Some Pressures Ease

Senior Housing News December 2, 2024
Andrew Christman

The outlook for non-profit life plan communities is improving going into 2025, according to a new analysis from Fitch Ratings.

Headwinds including cost inflation of certain goods and services, real estate price growth and higher interest rates have “leveled off,” while demand is rising as the baby boomers age, according to a new Dec. 2 report from the agency. That led the organization to change its outlook for the non-profit life plan community sector to “neutral,” from a “deteriorating” outlook earlier this year.

“Given expectations for a surge in demand, with the baby boomer generation reaching age and income eligibility for LPCs, and a lower interest rate environment, we expect debt-funded capital investment to accelerate over the coming year,” wrote...

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