Senior Living Occupancy Rate Rises in Q3, NIC Finds

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The National Investment Center for Seniors Housing and Care reported the senior housing occupancy rate in the U.S. increased to 88.7% in Q3 from 88% in Q2.

This marks the seventeenth consecutive quarter of occupancy rate increases.

Occupied senior housing units increased from 623,500 in Q2 to just under 630,000 in Q3.

Broken down by community type, independent living occupancy climbed above 90% for the first time since 2019 to hit 90.2%. That’s up 0.5 percentage point from Q2.

Assisted living occupancy hit 87.2%, up 0.9 percentage point from Q2.

Active adult occupancy was at 92.1%, down 0.2 percentage point from Q2.

NIC noted that these trends are a result of the large Baby Boomer generation–the release stated that “senior living communities are filling faster than they can be built.” Less than 1,400 new units in the sector were opened in Q3, and there was only 0.7% inventory growth over the prior year.

“Baby Boomers are reshaping the industry by demanding greater choice, whether that relates to lifestyle, services offered, or price point,” said Lisa McCracken, NIC’s head of research and analytics. “The sustained strength across all community types reflects diverse needs. We anticipate strong consumer demand will drive average senior housing occupancy rates above 90% by the end of 2026.”