Big picture, after a surge in 2024, 2025 brought more measured growth for the industry across a variety of measuring sticks. Transaction volume held near $8.8 billion — essentially flat versus 2024 — while occupancy strengthened to 95.1 percent. Rent growth, however, cooled to under 1 percent — the slowest pace since 2017. With deal activity plateauing rather than surging, the capital-event bonuses that had inflated C-suite and transaction pay slowed. Base salaries rose roughly 2 percent to 3 percent, while total compensation was flat to modestly higher.
Also, as cap-rate compression and rent growth receded, pay shifted toward roles that create value through operations. Asset management led, up about 5 percent, and property management rose roughly 3 percent, a reflection of record occupancy rates. Acquisitions base pay climbed about 4 percent as firms expanded junior investment teams, though total pay held flat as prior capital-event bonuses normalized. Development lagged, with bonuses down roughly 17 percent as high interest rates and construction costs curbed new starts.
Gains diverged by company size: large operators (over 7,500 beds) and small firms (under 2,500 beds) rose 3 percent to 4 percent, while the mid-market was essentially flat. The low end of base ranges also climbed about 5 percent, reversing last year’s decline, as wage floors firmed and a tighter labor market lifted starting pay.
With loan maturities expected to lift transaction volume and underwriting assuming very modest rent growth, demand should stay firm for acquisitions and asset-management talent, while development pay remains subdued until construction economics improve. The sector’s recent wave of large-scale consolidation also bears watching as duplicated corporate and regional functions could temper headcount and mid-level compensation growth.
