The Lodge Retirement Community

Senior Living Services
Market Study

Sisters, Oregon  ·  Deschutes County

📍 411 E Carpenter Lane, Sisters, OR 97759 📅 February 2026 📄 Three Reports

Confidential — For Authorized Use Only

Report 01

Appraisal Overview

Senior Living Market Conditions — Sisters, Oregon

1.1  Market Overview

Sisters, Oregon is a small destination community in Deschutes County. Population estimates for Sisters vary by source: the City of Sisters estimates 2024 population at approximately 3,738, while U.S. Census Bureau estimates range from 2,957–3,022 for the same period, and Portland State University's Population Research Center estimated 3,823 in 2023. These discrepancies are common for small cities between decennial counts. This report uses ACS 2019–2023 5-year estimates (population ~3,018) for demographic percentages unless otherwise noted. The city's median age of 49.8 years is significantly above both the Oregon state average (40.1) and the national average. An exceptional 36.7% of residents are aged 65 or older per ACS 5-year estimates (notably higher than the 2020 Census figure of 27.9%), and approximately 35% are aged 65–84, with 1.7% aged 85+, creating one of Oregon's most concentrated senior populations per capita. The median household income falls in the $80,000–$95,000 range depending on source (ACS 5-year: $93,115; City dashboard: ~$80,000), and median home values of approximately $586,000 indicate an affluent community with strong purchasing power for senior living services.

Note: Population, age, and income figures throughout this report are based primarily on ACS 2019–2023 5-year estimates and City of Sisters planning data, which can differ from point-in-time Census counts or other survey methodologies.

The 2023 BBG appraisal of The Lodge in Sisters (411 E Carpenter Lane) valued the property at $12,600,000 as-is and $14,100,000 upon stabilization. The property consists of 62 assisted living units built in 2019 on a 5.27-acre parcel with an additional vacant 1.78-acre excess land parcel valued at $700,000. The property has since been repositioned primarily as an independent living community with assisted living support through third-party home health agencies.

1.2  Existing Supply in Sisters

Important licensing context: The 2023 BBG appraisal evaluated the property as a 62-unit assisted living facility with AL licensing. In April 2025, the prior assisted living license (70A338) was closed and operations were repositioned as independent living with care provided by third-party home health agencies. For supply/demand counts throughout this report, Sisters is treated as having 62 IL units and 0 currently licensed AL beds unless otherwise noted. Where earlier tables reference The Lodge within the PMA's 300 AL-bed total, that reflects the 2023 BBG framework when AL licensing was active.

Within the city of Sisters, The Lodge Retirement Community is the only purpose-built senior living facility. It provides 62 units configured as studio, one-bedroom, and two-bedroom apartments on a single-story campus featuring restaurant-style dining, a fitness center, library, theater, billiards room, salon, walking paths, and themed courtyards. Oregon licensing records show the former "Sisters Senior Living" license (70A338) at the same address was closed April 24, 2025, and the facility has been relaunched under The Lodge Retirement Community brand.

No other institutional senior living communities exist within the Sisters city limits.

1.3  Competitive Landscape (20-Mile PMA)

The BBG 2023 appraisal defined the Primary Market Area (PMA) as a 20-mile radius. Within this PMA, the competitive supply totals 300 AL beds and 59 MC beds across seven facilities. All competitors except The Lodge are located in Redmond and Bend, approximately 20–25 miles east-southeast of Sisters.

FacilityLocationAL UnitsMC UnitsYear BuiltOccupancy (2023)
The Lodge (Subject)Sisters62201992%
Brookside PlaceRedmond45199489%
Juniper Springs Senior LivingRedmond4039201789% / 91%
Regency Village at RedmondRedmond55199486%
Fox HollowBend43200491%
Brookdale RedmondRedmond4020200592% / 92%
Pacific Living CentersRedmond152000N/A
TOTAL3005989.8% / 91.3%

Source: BBG Inc., 2023 Appraisal Report; NIC MAP; BBG field research.

1.4  Market Positioning & Key Metrics

MetricSubject PMANIC MAP Primary Avg.
Overall AL Occupancy89.8%81.2% (Q1 2023)
Average Monthly Rent (AL)$5,312$6,179
Total AL Inventory300 units341,788 units
Construction Pipeline0 units18,679 units
5-Year Inventory Growth0.00%5.47%
AL Penetration Rate5.7%5.37%

Source: BBG Inc. / NIC MAP Monitor Q1 2023.

Key takeaway: The PMA demonstrates occupancy rates well above national averages with zero new construction in the pipeline — a supply-constrained market with strong fundamentals. The 5.7% penetration rate exceeds the national average, reflecting the area's disproportionately large senior population.

1.5  Appraisal History & Validation

Four independent market studies conducted between 2011 and 2023 have consistently validated strong demand for senior living services in the Sisters market:

BBG, Inc. (November 2016) determined a need for 108 AL units using NIC's 14.75% penetration rate for the 75+ population. With no other ALFs in Sisters, the 62-unit project was well within unmet demand. Projected stabilization: 94% in 18 months at 3.4 units/month absorption.

Aaron Brown & Associates (2016 & 2017) concluded adequate demand for 62 units, projecting 12.5–14.4% growth in the 75+ PMA population. Net demand showed an undersupply of 37–40 units even after the 62-unit subject was included.

Pacific Northwest Group (2011/2013) determined the primary market could support up to 87 units of private-pay assisted living, finding the market undersupplied by 87 units.

1.6  Summary Assessment

The Sisters senior living market is characterized by severely constrained supply, robust demographics, above-average occupancy rates, and zero new competitive development. The Lodge holds a monopoly position as the only senior living community in Sisters, supported by fundamentals validated by four independent appraisals. The excess 1.78-acre parcel presents a significant expansion opportunity.

Report 02

Demand Analysis Overview

Demand Drivers and Market Indicators — Sisters, Oregon

2.1  Demographic Demand Drivers

IndicatorSistersDeschutes Co.OregonNational
Median Age49.8 yrs42.5 yrs40.1 yrs38.9 yrs
Population 65+36.7%21.2%18.9%17.3%
Median Household Income$80,000–94,500†$87,640$71,562$74,755
Median Home Value$586,000$523,000$423,000$303,400
Homeownership Rate79.3%66.2%63.4%65.0%
Bachelor's Degree+42%39%36.3%33.7%

Sources: ACS 2019-2023 5-Year Estimates; City of Sisters; Neilsberg; Data USA. †Sisters MHI range reflects City dashboard (~$80K) vs. ACS 5-year estimate (~$93–95K); see methodology note in Report 1.

2.2  Population Growth Trends

Sisters has experienced 208% population growth since 2000 — faster than 97% of similarly sized U.S. cities. The population grew from 959 in 2000 to 3,064 in 2020 to ~3,738 in 2024. The 75+ population in the 20-mile PMA is projected to increase 16.9% from 2023 to 2028 (BBG/Claritas).

Central Oregon attracts retirees through outdoor recreation, natural beauty, a four-season climate, no state sales tax, Social Security income exemptions, and access to St. Charles Medical Center in Bend (~22 miles). Sisters has a large Vietnam-era veteran population (1.73× the national average), indicating veteran-focused services could be a meaningful differentiator.

2.3  National Industry Context

National occupancy reached 89.1% at year-end 2025 — the 18th consecutive quarterly increase (NIC MAP, Q4 2025). Independent living remained above 90% and assisted living reached 87.7%. Active adult occupancy neared 92%. Year-over-year inventory growth fell below 1% for the third consecutive quarter — the lowest sustained levels since NIC MAP began tracking in 2006. The average asking rent for senior housing exceeded $5,650 in Q3 2025, a 4.3% year-over-year increase (Multi-Housing News / NIC MAP quarterly data). NIC MAP data indicate average operating margins surpassed 25% in mid-2025, the highest since 2018 (NIC MAP Senior Housing Market Outlook). NIC projects occupancy above 90% by end of 2026 — potentially the highest ever recorded. The oldest baby boomers turn 80 in 2026, and the U.S. 80+ population will grow by 4 million between 2025 and 2030 (a 27% increase).

Note: Specific national rent ($5,650) and margin (25%+) figures are derived from NIC MAP quarterly data releases and the NIC MAP Senior Housing Market Outlook report as cited by Multi-Housing News and PwC/ULI Emerging Trends in Real Estate 2026. Precise facility-level data requires proprietary NIC MAP subscription access.

2.4  Oregon Cost Benchmarks

Care LevelOregon Avg. (2024)Bend / Central ORNational Avg.
Independent Living$3,279/mo$3,500–4,000/mo$2,925/mo
Assisted Living$5,550–5,825/mo$5,700–5,900/mo$4,917/mo
Memory Care$7,000–7,500/mo$7,200–7,800/mo$6,200/mo
Nursing Home (Semi-Pvt.)$14,585/mo$13,000–15,000/mo$9,277/mo

Sources: Genworth Cost of Care Survey 2024; Caring.com; ElderLife Financial.

2.5  Key Demand Conclusions

The Sisters market presents a compelling demand story: (1) outsized senior population, (2) affluent demographics with strong ability to pay, (3) severe supply gap with only one facility in the immediate market, (4) zero competitive construction activity, (5) national tailwinds from aging boomers and constrained supply, (6) desirable retirement destination with strong migration patterns. All four prior independent market studies unanimously confirmed demand exceeding current supply.

Report 03

Comprehensive Demand Study

Independent Living, Assisted Living & Memory Care — Sisters, Oregon

3.1  Executive Summary

This Comprehensive Demand Study analyzes the market opportunity for senior living services in Sisters, Oregon, across three service levels: Independent Living (IL), Assisted Living (AL), and Memory Care (MC). The Primary Market Area (PMA) is defined as a 20-mile radius from The Lodge Retirement Community.

Key findings indicate substantial unmet demand across all three service levels. Within Sisters, 36.7% of the population (~1,108 people) are 65+, and the 75+ PMA population is projected to grow 16.9% from 2023 to 2028. The current supply of 62 IL/AL units at The Lodge and zero MC beds in Sisters — against 300 AL and 59 MC beds in the broader PMA — leaves significant room for expansion.

Bottom line: We project demand for approximately 40–60 additional senior living units in the Sisters market (comprising additional IL, AL, and a dedicated MC component), with potential for additional phases as boomers continue aging into the 80+ cohort over the 2026–2035 horizon.

3.2  Market Area Definition & Demographics

3.2.1  Primary Market Area Delineation

Consistent with the 2023 BBG methodology, the PMA is a 20-mile radius capturing Sisters, Redmond, and portions of western Bend (~110,000–120,000 residents). Given Sisters' geographic isolation (20–25 miles of rural highway from competitors), this study also analyzes a "Sisters Core Market" (10-mile radius, ~5,000–8,000 residents with significantly higher senior concentrations).

3.2.2  Sisters Age Distribution

Age CohortPopulation% of TotalSenior Living Relevance
Under 18~38912.9%Not age-qualified
18–44~53017.6%Workforce / potential staff
45–64~93931.1%Adult child decision-makers
65–6944814.8%Active adult / IL prospects
70–74~35011.6%IL / early AL prospects
75–79~2006.6%Core AL prospects
80–84240.8%AL / MC prospects
85+521.7%AL / MC / higher acuity
Total 65+~1,10836.7%Age-qualified seniors

Sources: ACS 2019-2023 5-Year Estimates; Neilsberg; U.S. Census Bureau.

3.2.3  20-Mile PMA Demographics

Category2023 Est.2028 Proj.5-Year Change
Total Population~110,000~119,300+8.5%
Population 75+~5,250~6,140+16.9%
Population 85+~1,200~1,450+20.8% (est.)
Adult Children (45-64)~28,000~29,400+4.95%

Sources: BBG Inc. 2023 Appraisal; Claritas demographic projections.

3.3  Economic & Housing Characteristics

IndicatorSistersDeschutes Co.Oregon
Median Household Income$94,524$87,640$71,562
Per Capita Income$41,550–57,043$38,500$36,800
Median Home Value$586,000$523,000$423,000
Homeownership Rate79.3%66.2%63.4%
Poverty Rate6.9%8.5%12.0%
Bachelor's Degree+42%39%36.3%
Self-Employed29.1%18%12%

The high homeownership rate (79.3%) and substantial home values ($586K median) provide residents with significant home equity to fund senior living. Household income for ages 45-64 is $102,917, indicating strong "adult child" capacity. Low poverty (6.9%) and high education (42% bachelor's+) correlate with higher private-pay utilization rates.

3.4  Existing Supply Analysis

3.4.1  Supply Within 20-Mile PMA

FacilityCityDistanceILALMCTotalBuilt
The Lodge (Subject)Sisters0 mi62*622019
Brookside PlaceRedmond~20 mi45451994
Juniper SpringsRedmond~20 mi4039792017
Regency VillageRedmond~20 mi55551994
Fox HollowBend~22 mi43**43862004
Brookdale RedmondRedmond~20 mi4020602005
Pacific Living CentersRedmond~20 mi15152000
TOTAL10523859402

*The Lodge currently operates primarily as IL. **Fox Hollow offers both IL and AL. Sources: BBG 2023; Oregon DHS; facility websites.

Critical supply gap: Zero new construction in the PMA pipeline. All competitors are 20+ miles from Sisters. Average competitor facility age is 18 years. No memory care exists within 20 miles of Sisters.

3.5  Demand Projections by Service Level

3.5.1  Independent Living Demand

IL Demand CalculationLowMidHigh
75+ Population (2025 est.)5,7005,7005,700
Penetration Rate5.0%5.5%6.0%
Total IL Demand285314342
Current PMA IL Supply~105~105~105
Unmet IL Demand180209237
Sisters Capture Rate15%18%20%
Sisters IL Allocation273847

The Lodge's 62 IL units serve current local demand adequately. As the 75+ population grows to ~6,140 by 2028, additional IL demand of 15–30 units will materialize.

3.5.2  Assisted Living Demand

AL Demand CalculationLowMidHigh
75+ Population (2025 est.)5,7005,7005,700
AL Penetration Rate10.0%12.0%14.75%
Total AL Demand570684841
Current PMA AL Supply238238238
Unmet AL Demand332446603
Sisters Capture Rate10%12%15%
Sisters AL Allocation335490

A conservative estimate of 30–40 dedicated AL units in Sisters is well-supported by the data.

3.5.3  Memory Care Demand

MC Demand CalculationLowMidHigh
75+ Population (2025 est.)5,7005,7005,700
Dementia Prevalence (75+)10%11%12%
Persons w/ Dementia570627684
MC Penetration Rate25%30%35%
Total MC Demand143188239
Current PMA MC Supply595959
Unmet MC Demand84129180
Sisters Capture Rate12%15%18%
Sisters MC Allocation101932

A dedicated 16–24 bed memory care wing in Sisters is strongly supported. No MC exists within 20 miles of Sisters.

3.6  Gap Analysis & Recommendations

3.6.1  Summary of Demand Gaps

Service LevelCurrent SupplyDemand (2026-2030)GapPriority
Independent Living62 units62–85 units0–23 unitsMedium
Assisted Living0 licensed beds30–55 units30–55 unitsHIGH
Memory Care0 beds16–24 beds16–24 bedsHIGH
TOTAL62 units108–164 units46–102 units

Demand Gap Visualization

IL Gap
0–23 units
AL Gap
30–55 units
MC Gap
16–24 beds

3.6.2  Development Recommendations

Phase 1 — 2026–2028
Relicense & Reposition

Pursue AL relicensing within existing 62-unit building. Create IL/AL mixed model with 40–45 IL units and 17–22 AL units through service-level differentiation. Leverages existing infrastructure.

Phase 2 — 2027–2029
MC + AL Expansion

Develop the 1.78-acre excess land parcel (appraised $700K) for 16–24 MC beds and 15–20 AL units. Fills complete absence of MC in Sisters. Est. investment: $5–10M.

Phase 3 — 2029–2035
IL Growth & Active Adult

Add 20–30 IL units and evaluate active adult / "IL Lite" products for the 55–74 demographic. Sisters' 448-person 65–69 cohort represents a strong future demand pipeline.

3.6.3  Strategic Differentiators

The Lodge's advantages include: (a) only senior living in Sisters proper (captive market); (b) newest facility in PMA (built 2019); (c) iconic Three Sisters mountain views; (d) excess land available for expansion; (e) walkable downtown proximity. Integration of veteran services through A Place for Vets could further differentiate, given Sisters' outsized veteran population.

3.6.4  Absorption Expectations

Based on four prior studies and national benchmarks: 3–5 units/month for IL/AL, 2–3 beds/month for MC. Initial absorption of 15–30% in month one. Stabilized occupancy of 92–95% projected within 14–18 months.

3.7  Methodology & Data Sources

SourceData UtilizedDate
U.S. Census Bureau / ACSPopulation, demographics, income, housing2019-2023 5-Yr Est.
BBG Inc. AppraisalPMA supply, occupancy, penetration, valuationJuly 18, 2023
BBG Inc. Market StudyDemand penetration, absorption projectionsNovember 21, 2016
Aaron Brown & AssociatesDemand analysis, 5-year projectionsMarch 2017 / Oct 2016
Pacific Northwest GroupPrivate pay demand, market capacityMay 2011 / April 2013
NIC MAP MonitorNational occupancy, rent, supply trendsQ1 2023 / Q3 2025
NIC / ASHAIndustry benchmarks, operator data2022–2025
Genworth Cost of CareOregon senior living cost data2024
Oregon DHSLicensing records, facility status2025
Claritas (via BBG)PMA demographic projections2023–2028
City of SistersLocal population, planning data2024
PwC / ULI Emerging TrendsNational market outlook2026

This document was prepared for The Lodge Retirement Community for strategic planning purposes. It does not constitute an appraisal or guarantee of future market performance. Recipients should conduct independent verification and consult appropriate professionals before making investment decisions.