Why Active Adult is the Fastest Growing Segment within Senior Living
By Scott McCorvie, CEO of Enhance Senior Living.
Overview of Brokerage Services
Enhance Senior Living is a national senior living broker firm that specializes in nationwide senior living investment brokerage solutions. This focus covers active adult brokerage, independent living brokerage, assisted living brokerage, memory care brokerage, and skilled nursing brokerage across multiple markets. We work with developers, operators, and investors to align strategies with market opportunities.
Learn more about our brokerage and operational improvement solutions and how they can help your organization grow. We invite you to contact us today to discuss options, timelines, and the potential to enhance senior living through strategic investments, asset optimization, and ongoing support.
If you like this article, be sure to subscribe to the Enhance Senior Living Podcast. The show is on all podcast platforms including Apple Podcasts | Spotify | Amazon Music
There’s a new leader in the senior living spectrum that’s receiving the most attention. Although most refer to this segment as active adult, age-restricted apartments, or independent living light, I’ve coined a much better term for this emerging product — Lifestyle Living.
Senior Living: Understanding Active Adult or Lifestyle Living
Active Adult or Lifestyle living is best described as unbundled independent living within Senior Living. It means you receive independent living without inclusive dining or housekeeping services.
As consumers become more price conscious, unbundling the services provides flexibility. It offers optionality in monthly pricing for residents.
It also provides more freedom and peace of mind for seniors who travel. Many prefer dining out at area restaurants.
Active adult is not a new concept. It has long been popular in master planned communities for recent retirees. These communities mostly offer fee simple home ownership. Examples include The Villages, Margaritaville, and Sun City Center. They revolve around a central clubhouse and offer many amenities. Social options target the 55+ age population.
The success comes from attracting residents who seek an upgraded social lifestyle. They can maintain their independence in the process. This model has informed many senior housing developments and continues to adapt to changing preferences. Providers emphasize safety, accessibility, and communities that welcome visitors and caregivers alike.
Age-restricted apartments are also not a new concept, as they’ve been around for decades. The concept behind this product has largely been due to reducing costs and required maintenance to residents living on a fixed income. Although most of these communities offer some amenities geared towards seniors, they typically do not offer the staffed programming and socialization options that attract so many residents to independent living.
Why is this new lifestyle living product drawing so much attention? It comes from two concepts shaping the market today. First, the average age for residents in this type of setting is 72, with demand surging from baby boomers. Second, independent living now resembles assisted living in practice.
Recent technologies and home healthcare options drive this shift. The average age of an independent living resident has risen and is currently 82.
This creates a gap for seniors who want more socialization and lifestyle options while staying independent. They are not yet ready to move into traditional Senior Living options. This age gap also aligns with the reported average length of stay in stable lifestyle communities, typically 7 to 10 years. As a result, these communities show higher annual rent growth than other real estate classes.
Nevertheless, I would caution any developer who wants to rush into this new product.
Moreover, it still requires much specific industry knowledge and know-how to stabilize these communities.
Specifically, understanding the supply/demand relationship, competitive market, amenities, design layout, unit sizing, operations, staffing, programming, and sales strategies is essential.
Also, patient investors are needed; absorption is slower than traditional senior living, about five units per month.
Enhance Senior Living is a national senior living broker firm specializing in nationwide senior living investment brokerage solutions including active adult brokerage, independent living brokerage, assisted living brokerage, memory care brokerage, and skilled nursing brokerage. Learn more about our senior living broker and operational improvement solutions and contact us today to learn how we can help you enhance senior living today.
If you like this article, be sure to subscribe to the Enhance Senior Living Podcast. The show is on all podcast platforms including Apple Podcasts | Spotify | Amazon Music
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