Longer life expectancy, increased solo aging and changing lifestyle preferences are driving demand for active adult rental properties as occupancy rates soar into the mid-90s, according to the National Investment Center for Seniors Housing & Care.
Occupancy rates are close to 93%, on average, within the almost 800 active adult communities tracked by NIC MAP Vision, including newly opened properties still in lease-up. Properties open for at least five years are reporting occupancy rates of 95% or higher, Caroline Clapp, a senior principal at NIC, wrote in a recent blog post.
NIC defined the active adult property type in 2022 as “age-eligible, market rate, multifamily properties that are lifestyle focused; general operations do not provide meals.” The American Seniors Housing Association’s Where You Live Matters consumer website describes active adult communities as “a type of independent living community offering a lifestyle that includes resort-type amenities and plenty of social activities as well as living spaces ranging from condominiums to single-family homes. Hospitality services and outdoor maintenance might be included in the monthly fee, and the community may offer amenities such as a clubhouse and recreational spaces.”
Clapp said in the active adult communities NIC MAP Vision tracks, fitness centers and pools were the most common amenities, due to an increasing focus on wellness. Clubhouses, dog parks, libraries and movie theaters also were common resort-style amenities playing into the wellness and longevity theme. In-house lifestyle coordinators were deemed “essential” to implementing and enhancing resident-led activities.
The 65-to-74-year-old age group is the fastest-growing renter cohort in the country, according to Clapp, who noted that an additional 2.2 million older adults will enter the rental market over the next 10 years. With low penetration rates — 0.5% among 65-to-84-year-old households — room for development exists in markets that attract those healthy and active older adults, she added
The active adult segment of seniors living was predicted to be the biggest investment opportunity this year by the Partner Valuation Advisors’ US Seniors Housing 2023 Investor Survey Report released this past fall.
Experts form NIC, Greystar, Zonda Advisory and Senior Housing Consulting will host a webinar on Wednesday to delve into the latest data on the active adult rental market.
