2023 U.S. ACTIVE ADULT REPORT |
LATEST SENIORS HOUSING INSIGHTS
Designed for seniors who are looking for maintenance-free independent living while keeping an active lifestyle, the U.S. Active Adult asset class has gained popularity as baby boomers enter their retirement years. Active Adult communities can range in design from traditional multifamily to single-family and build-to-rent properties and boast average per-unit rents that are roughly 5.9 percent higher than the national average for a traditional Class A multifamily unit.
The report dives into key market indicators, such as rental rates, vacancy rates, occupancy levels, and new supply trends, providing a comprehensive overview of the current state of the U.S. Active Adult market. It delves into market dynamics, exploring emerging trends, regional variations, and the impact of macroeconomic factors on the sector.
KEY TAKEAWAYS
- More than 60.7 million Americans are over the age of 65. During the next five years, that number is expected to increase to nearly 70 million, an annual growth rate of three percent.
- Active Adult management fees are in line with Multifamily (an average three percent of total revenue) but lower than traditional senior housing assets.
- Since 2013, private investment has totaled over $4.1 billion in the U.S. Active Adult asset class, accounting for 62.7 percent of all capital flow.
- Active Adult communities continue to gain market appeal from investors and are expected to be one of the most opportunistic investments as interest rates stabilize.