Skilled nursing is in the middle of industrial irony. Its recovery from the depths of the pandemic — when there were so many people dying in care — has been ongoing. In the third quarter of 2023, the occupancy rate had risen up to 82.2%, 850 basis points over the pandemic low point, according to a report by Marcus & Millichap.

"Improving occupancy is backed by consistently positive net absorption, with over 12,000 net enrollments so far this year," Marcus & Millichap wrote. "In the decade preceding the health crisis, only one year recorded positive absorption, at slightly over 1,000 beds in 2014. Strong demand for care is further reflected in climbing rents. The nation's average rate rose 3.4 percent year-over-year in September, its fastest gain since 2010."

All fine, but the industry continues to face big hurdles. One is the reduction of inventory, with more than 25,000 beds gone since 2019.