NIC’s 2025 outlook for active adult rental communities is positive, with robust demand expected to keep average occupancy rates in the mid-90% range. Like 2024, development is likely to remain somewhat subdued as access to capital and to land remain headwinds. As a result, the 0.5% average penetration rate for active adult is unlikely to increase significantly in 2025.
Operationally, NIC expects active adult rental communities to continue to evolve to meet consumers’ changing lifestyle preferences, and organizations that can effectively differentiate their products and address the evolving needs of the 55+ demographic are well-positioned to succeed in this burgeoning market. Opportunities for customization, providing a la carte services, and increasing adoption of technology appear to be on the horizon for 2025.
See NIC’s recently updated white paper for detailed insights on the active adult property type.
For a comprehensive understanding of the active adult property type, explore NIC’s Active Adult Communities course.