Active Adult Is The Fastest Growing Segment

The Real Estate Espresso Podcast

Active Adult Is The Fastest Growing Segment

Spotify Google Podcast Apple Podcast Subscribe via RSS Leave a Review

Active Adult Is The Fastest Growing Segment: A Closer Look

Today, we’re venturing into an exciting new trend in the building construction industry focused on adult living. Our exploration centers on the rapidly growing market segment known as the ‘active adult’ category.

The Active Adult Market Segment

The ‘active adult’ category is a refreshing addition to the hierarchy of senior housing, bridging a significant gap between a regular market-rated apartment and independent living. A recent report from the National Investment Center for Senior Housing Care places emphasis on this burgeoning market niche. Catering exclusively to newly retired individuals who maintain an active lifestyle, this type of housing often includes specific amenities and services aimed squarely at this demographic.

Advantages of Active Adult Housing

Active adult housing offers various advantages over traditional detached homes:

1. They are ‘lock and leave’, ideal for those who travel frequently.
2. They provide a social connection to mitigate the void often left by retirement.
3. They offer many of the amenities found in independent living.
4. They avoid the stigma associated with ‘old folks homes’.

The key to these communities is the emphasis on an active social calendar, with residences becoming part of the product offering by actively contributing to a vibrant social scene.

Emerging Trends in Active Adult Housing

Once an obscure term referring to single-family homes in community settings, ‘active adult’ now represents the fastest-growing renter cohort in the U.S. in the 65 to 74 age range. Projections show an additional 2.2 million renters in this category over the next decade, representing over 9% of renters compared with a meagre 1.5% back in 2013.

Trends in Active Adult Housing	Impact
Longer tenure	Minimize turnover, attract long-term tenants.
Staffing requirements	Increased demand for services requires additional staff.
Lease-up process	Slower than market rate apartments due to home sales involved.
Market differentiation	Unique offerings set these properties apart.
Transition to other forms of senior housing	Consideration for future conversion to independent living.

With careful management, active adult developments can consistently attract adults at the lower end of the age qualification spectrum, thus ensuring longer tenant tenure.

Conclusion

There’s no question that the ‘active adult’ housing market is a promising engine for growth and offers numerous opportunities for developers. As this trend continues to gain momentum, I’m eager to see the innovative solutions this market will produce and the ways in which it will reshape the future of elder care while simultaneously invigorating the real estate sector.

Stay connected and discover more about my work in real estate by visiting and following me on various platforms: