U.S. Active Adult (55+) Community market to Eyewitness Huge Marginal Growth by 2030

Posted by Mrudula Anil Karmarkar on July 6th, 2022

The U.S. active adult (55+) community market size is estimated to reach USD 805.0 billion by 2030, expanding at a CAGR of 4.01% from 2022 to 2030, according to a new report by Grand View Research, Inc. The growing interest of older adults below 65 years of age in a maintenance-free lifestyle, structured activities, socialization, and a sense of community are the major factors driving the market. In addition, retirement not being in the eligibility criteria, and the variety of optional care and support services available at these facilities are the factors boosting the market growth.

An increasing population aged between 55 to 64 years is categorized as active adults seeking a social and friendly environment. According to the U.S. Census Bureau, baby boomers aged between 55 and 73 have brought both challenges and opportunities to the economy, infrastructure, and institutions. Active adult communities are quite similar to any other residential community, apart from their age restrictions, most of them are designed for a low maintenance lifestyle. These communities are mostly built near shopping malls, parks, restaurants, and other places for socializing, as the residents want to live a healthy lifestyle during their final years of retirement. The communities do not provide on-site dining facilities or healthcare services to the residents. The Homeowners Association (HOA) dues of these communities pay for assured communal amenities.

The COVID-19 pandemic resulted in senior living facilities becoming a hub for COVID-19 infections. This resulted in a fall in occupancy in adult community homes. The immediate impact was the drop in revenue of the adult community market, resulting in losses. According to the National Investment Center for Seniors Housing & Care’s MAP Data, the occupancy at retirement centers hit a 16-year low in 2020 due to the pandemic. The pandemic has also resulted in a staffing crisis for the active adult living communities due to restrictions on the workforce and the non-availability of a quality workforce for the amenities, resulting in a challenge in providing the best services for restaurants, clubs, housekeeping, and others. In addition, many elder staff members retired due to the pandemic.

Increasing demand from baby boomers, reduction in the stigma of retiring, and growing interest of investors in senior living facilities are driving the market. Active adult housing is a purpose-built multifamily rental housing for younger seniors and has a heavy emphasis on community space and activities. The living preferences of baby boomers are changing, as this population wants to stay independent and lead an active lifestyle. Thus, post-retirement they prefer to relocate to communities that have residents with shared values and not senior living or assisted living facilities.

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U.S. Active Adult (55+) Community Market Report Highlights

• People in the U.S. buying homes at active adult retirement communities look forward to various amenities like sports, restaurants, clubs, & recreational activities among others. Common areas are the most important amenity in demand by seniors because they all have different hobbies and want to spend each day engaged & content
• By gender, women held the maximum share in 2021 attributed to a greater life expectancy for women. The men segment is expected to witness a high CAGR during the forecast period attributed to the postponement of disability to older ages
• Strategic initiatives undertaken by various market players are expected to keep growth prospects upbeat in the following years. For instance, in December 2022, The Villages announced a partnership with the University of Florida, aimed at facilitating advanced healthcare & wellness services for the village community
• There are different types of active adult communities based on the population, including luxury communities, college town & university communities, retirement parks, golf and resort communities, religion-specific communities, active senior communities, single-only communities, and gated communities. The college town and university communities are more preferred among older people who want to continue working
• The increasing number of retirements since the COVID-19 pandemic, growing life expectancy, and rising focus of investors on senior living are factors driving the entry of new players

The key players in the market are focused on providing the best homes along with top amenities & activities for residents. Providing access to healthcare services is the latest trend among active adult living communities. Latitude Margaritaville and The Villages provide healthcare services within the community. The communities are also focused on outdoor activities for residents for a better social environment for a healthy community. Expansion of facilities and partnerships are the preferred strategies adopted by top players, for instance, in December 2021, The Villages announced the expansion of its community by over 241 acres which were to include a new hospital. Some of the key players in the U.S. active adult (55+) community market include.

• The Villages
• Pultegroup, Inc.
• Latitude Margaritaville
• Hot Springs Village
• Rossmoor Walnut Creek
• Robson Ranch
• Sun Lakes
• Green Valley