From the first to second quarter in 2025, senior housing occupancy rates increased from 87.3% to 88.1%, according to new data from the National Investment Center for Seniors Housing & Care (NIC).
The increase was led by independent living properties that serve older adults who do not need ongoing long-term care. With an increase of 0.8 percentage points, the occupancy rate for independent living properties was 89.7%, slightly above the 0.7 percentage-point increase to 86.4% for assisted living. Independent living has outpaced assisted living for three consecutive quarters.
Active-adult rental communities were 92.3% occupied in the second quarter and are typically lower-priced than communities that offer services and dining provided in traditional independent living. Â
“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,” says 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 high demand and limited construction are keeping occupancy high, NIC points out. The number of units occupied increased from 619,800 in the first quarter of 2025 to roughly 625,800 in the second quarter of 2025. Only 809 new units were opened in the second quarter, less than 1% inventory growth year over year, and the lowest recorded rate since NIC began reporting data in 2005.
“Many capital providers and builders are taking a cautious approach to new projects as they monitor economic conditions and public policy developments,” says 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.”
NIC says rental rates for independent living communities increased 4.25% from a year prior to $4,402 per month compared with a smaller 3.97% annual increase across assisted living communities, which average $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 private-pay senior housing,” adds 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 across 31 primary markets, and all markets are well above 80% occupancy. The top three markets were unchanged from last quarter, with each having occupancy rates above 90%. These include 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.