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The active adult housing sector is experiencing a boom in 2024, with recent trends and data indicating continued growth. Compared to other types of senior housing, active adult properties are outperforming on key metrics. However, success in this market requires a deep understanding of the active adult consumer.
According to the latest NIC MAP Vision data, there are over 800 active adult properties with a total of more than 116,000 units across the U.S. These communities boast an average occupancy rate of 93%, significantly higher than the industry average for senior living. With a median age of nine years and an average of 138 units per project, these communities are relatively new.
Demographic projections suggest that there will be 2.2 million adults aged 65 and older entering the rental market for senior housing in the next decade. Additionally, the penetration rates for active adult communities are still relatively low nationwide, indicating room for further growth.
To succeed in the active adult market, companies must focus on meeting the evolving needs and preferences of their prospective residents. Understanding why people choose active adult living over other options is crucial for developers and operators. Companies must be highly focused on the customer and tailor their offerings accordingly.
Despite the challenges, the active adult sector remains attractive with strong demand, supply, absorption, and rent growth fundamentals. Market penetration rates are still low, presenting opportunities for growth. Companies are developing strategies to meet the social, lifestyle, and wellness needs of active adult residents.
The diversified profile of the baby boomer generation necessitates a tailored approach to active adult communities. Operators are exploring niche markets within the active adult sector to cater to specific resident needs. Segmentation and wellness-focused amenities are emerging trends in new active adult projects.
In conclusion, the active adult housing market is poised for continued growth, with opportunities for developers and operators to innovate and meet the demands of a diverse consumer base. Success in this sector requires a deep understanding of the unique needs and preferences of active adult residents.
