How Does Active Adult Differ from Traditional Senior Housing?
NIC MAP tracks age-eligible, market-rate, multifamily rental properties focused on enhanced lifestyle programming without providing meals. These communities are designed for older adults who are ready to downsize to a maintenance-free lifestyle, but who do not yet need the services and care provided in traditional independent living communities.
As of the first quarter of 2025, NIC MAP tracked nearly 800 active adult rental properties totaling approximately 118,000 units, a much smaller market size than the approximately two million senior housing units that NIC MAP tracks. With a median unit count of 138, active adult rental communities are comparable to traditional independent living’s median of 144 units, although the size of the units is typically larger within active adult. With a median age of less than 10 years old, active adult communities are generally newer than traditional independent living communities, which have a median age of 21 years1.
Stabilized Properties Are Nearly 96% Occupied on Average
NIC MAP in the first quarter of 2025 began reporting a time series of quarterly occupancy rate trends. At 95.6% in the most recent quarter, stabilized average occupancy rates have been above 95% for three consecutive quarters. The average all properties occupancy rate – which includes properties open less than two years – has also been robust, ranging from 92% to 94% over the most recent four quarters.
What Rental Rates Are These Active Adult Communities Charging?
NIC MAP reports median average monthly rents (AMR) by metro area. Within the largest 31 Primary Markets tracked by NIC MAP, Miami ranks highest at a median of nearly $3,500 per month, followed by Portland, Chicago, Washington, DC, and New York as the remainder of metro areas with median AMRs above $3,000. The next five highest median AMRs are clustered around $2,500 in Boston, Seattle, Philadelphia, San Antonio, and Denver.
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What is Driving Demand for Active Adult Rental Communities?
The fastest-growing group of renters in the U.S. are those aged 65–742, reflecting broader demographic shifts as the baby boomer generation ages. There is also a notable rise in “gray divorce” (divorces among those aged 50 and older) and solo aging, both drivers of demand for active adult rental communities. Additionally, the boomer generation in recent years has become the wealthiest in terms of median net worth, further fueling demand for high-quality properties with resort-like amenities.
Most Popular Amenities Focus on Lifestyle and Wellness
The most popular amenities in active adult rental communities include fitness centers, pools, clubhouses, and activities coordinators, illustrating residents’ strong interest in lifestyle, engagement, and wellness. NIC MAP’s Primary and Secondary Markets share nine of the top 10 amenities, with personal storage ranking within the top 10 amenities in the largest 31 Primary Markets tracked by NIC MAP, while salons and spas rank within the top 10 amenities in the 68 Secondary Markets.
Room for Growth
Looking ahead, the active adult rental market is still in its early stages. Penetration rates are well below those of traditional senior housing, indicating potential opportunity for further development depending upon the market and submarket. Investors and developers should conduct in-depth research and ensure thorough due diligence when entering a new market, striving to keep lifestyle and engagement at the core of lease-up and operations.
[1] ASHA The State of Seniors Housing, 2024
[2] Census Bureau