Independent Living Penetration Rates: One Indicator of Market Demand

Independent living penetration rates are an important indicator of market demand for new senior living developments and expansion projects. However, with varying methods of calculating demand, different terminology, and certain subjective assumptions, how can stakeholders interpret the results or understand what an acceptable penetration rate looks like? The objective of this white paper is to provide an interpretation of penetration rate results that allow stakeholders to understand acceptable thresholds of market demand for senior living services.


The analysis of penetration rates in this document represents the approach, methodologies and interpretations of DHG Healthcare's Senior Living team ("DHG Senior Living"). DHG Healthcare is the national healthcare practice of Dixon Hughes Goodman LLP.

Over the past 15 years, DHG Senior Living has been collecting and summarizing information for our independent living benchmark database (the “DHG IL Database”). Our original white paper released in 2007 introduced our database of senior living developments and methodology surrounding our independent living penetration rate analysis. Subsequent versions incorporated additional projects, as well as the concept of income qualification stratifications. While our method for calculating independent living penetration rates has not changed, the continued addition of new projects allows us to further stratify this data by other considerations such as region, market size and financing type among other parameters.


Keith Seeloff
Partner, DHG Healthcare
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