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Real EstateMay 22, 2024

Florida’s Assisted Living Costs Are on the Rise, Thanks to A 125% Increase in Property Insurance Rates

Retirement Crisis

Rhea Lobo

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Hurricane season isn’t here yet, but Florida’s nursing homes are already facing storms. Over the years, big storms have driven up commercial property insurance costs — forcing hundreds of nursing homes to shut down. Assisted living costs have jumped from $28.8K in 2004 to $60.6K in 2023, making care less available for the state’s elderly population.

Since 2009, 21 out of 34 Florida retirement communities failed to make their first debt payment post-pandemic, pushing the state’s senior living default rate to 18% — more than double the 8% national rate.
Over the past five years, Florida’s commercial property insurance rates surged by 125%, causing an average of 146 nursing homes and assisted living facilities to close each year.

Stormy waters: Florida has long been a retirement haven due to its reasonable cost of living, making the tightening assisted living market even more problematic. Facilities are grappling with higher operational costs and skyrocketing insurance rates, pushing the long-term care market to the brink. These pressures have forced closures, leaving residents scrambling for limited alternatives and exacerbating an already tense situation for families and caregivers alike. With no relief in sight, Innovation Senior Living CEO Pilar Carvajal believes, “We are headed into a train wreck.”