Baby Boomers Begin Making the Move to Senior Housing and Active Adult
Senior housing occupancy rate rises, with demand for independent living communities leading the increase; active adult occupancy above 92%
ANNAPOLIS, Md. (July 10, 2025) – Older adults are moving into senior housing at record rates, according to the National Investment Center for Seniors Housing & Care (NIC). The senior housing occupancy rate in the United States increased 0.8 percentage points, from 87.3% in the first quarter of 2025 to 88.1% in the second quarter according to newly released NIC MAP data.
That increase was led by a heightened demand for independent living properties, which are rental properties that primarily serve older adults who do not yet have ongoing long-term care needs. The occupancy rate for independent living communities increased 0.8 percentage points to 89.7%, slightly more than the 0.7 percentage point increase to 86.4% for assisted living properties, according to NIC using data from NIC MAP. This was the third consecutive quarter in which occupancy rate gains in independent living outpaced gains in assisted living.
Active adult rental communities are a fast-growing and typically lower-priced option for older adults who are ready to downsize from their current homes but do not yet need or want the services and dining provided in traditional independent living. These communities were 92.3% occupied in the second quarter.
“The youngest Baby Boomers have turned 60 and the oldest are approaching 80, so this group is starting to make decisions about how and where they want to age,” said Caroline Clapp, senior principal at NIC. “Baby Boomers appear to prioritize mental, physical, and social wellness, and they’re choosing to move into independent living and active adult communities because that lifestyle is baked into the experience.”
The combination of high demand for senior living from older adults and limited construction of new communities continues to drive occupancy as available senior housing communities fill up. The number of occupied units increased from 619,800 in the first quarter of 2025 to roughly 625,800 in the second quarter of 2025. The number of newly available senior housing units was the lowest recorded since NIC began reporting data in 2005: only 809 new units were opened in the second quarter, less than 1% inventory growth year-over-year.
“Many capital providers and builders are taking a cautious approach to new projects as they monitor economic conditions and public policy developments,” said Arick Morton, CEO of NIC MAP. “This slower pace of construction continues to widen the gap between future supply and the growing demand from Baby Boomers who will need housing and care options in the coming years.”
Rental rates for independent living communities increased 4.25% from a year prior to $4,402 per month compared to a smaller 3.97% annual increase across assisted living communities, which averaged $6,976 per month.
“Baby Boomers may be the wealthiest generation in U.S. history, but nearly half of the 14 million middle income seniors won’t be able to afford to pay for private senior housing,” said Clapp. “We need more housing units for America’s older adults overall, and we need more affordable options for those with modest incomes.”
NIC MAP tracks occupancy rates in 31 primary markets across the country, and all markets are well above 80% occupancy. The top three markets were unchanged from last quarter, and each had occupancy rates above 90%: Boston (91.7%), Cincinnati (91.5%) and Baltimore (90.9%). Meanwhile, Miami (85.1%), Atlanta (84.6%), and Houston (84.5%), remained in the bottom three.
A summary of the newly released NIC MAP Market Fundamentals Data, by NIC MAP, is below. An abridged downloadable version will be available at 4:30 p.m. ET on Thursday, July 10. While the report is a complimentary resource, only NIC MAP clients have exclusive access to the underlying data and additional metrics at the metro level.
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About the National Investment Center for Seniors Housing & Care
The National Investment Center for Seniors Housing & Care (NIC), a 501(c)(3) organization, works to enable access and choice by providing data, analytics, and connections that bring together investors and providers. The organization delivers the most trusted, objective, and timely insights and implications derived from its analytics, which benefit from NIC’s affiliation with NIC MAP, the leading provider of comprehensive market data for senior housing and skilled nursing properties. NIC events, which include the industry’s premiere conferences, provide sector stakeholders with opportunities to convene, network, and drive thought-leadership through high-quality educational programming. For more information, visit NIC’s website and follow NIC on LinkedIn, Facebook, and Instagram.
About NIC MAP
NIC MAP believes data drives outcomes. We provide purpose-built data exclusively for senior housing, offering relevant, market-specific insights you won’t find anywhere else, and we’re empowering the senior housing industry to stay nimble and achieve optimal results. Our platform supports robust decision-making with real-time access to occupancy rates, transaction details, and construction project tracking, enabling industry leaders — including the top senior housing operators, largest government agencies and major investors — to navigate market complexities and capitalize on investment opportunities effectively. For more information, visit www.nicmap.com.
