The National Investment Center for Seniors Housing & Care (NIC) starts its 12-page white paper on Active Adult Rental Properties by defining the qualities associated with the sector:  "Active adult rental communities are age-eligible, market-rate, multifamily properties focused on enhanced lifestyle programming without providing meals." NIC then elaborates on each aspect of the definition to create a "framework" to enhance data collection on the sector’s growth and performance.

Among the findings:

• Renters ages 65 to 74 – the typical age of new entrants into active adult rental communities – comprise nearly 10% of renters in the US; this is the fastest growing renter cohort of all ages, including those younger than 55.
• Renters ages 55 to 64 are the largest renter cohort, at nearly 14% of renters; this is the second fastest growing cohort.
• An additional 2.2 million adults ages 65 and older are projected to enter the rental market over the next decade.

Demand drivers include:

• Longer life expectancy combined with an increased focus on wellness by these “younger” seniors are delaying the need for higher acuity communities.
• Increased solo aging is driving a desire to downsize or “right-size” into smaller residences.
• Changing lifestyle preferences are driving interest in maintenance-free communities with resort-style amenities and social engagement, including significant interest in “affinity” communities.

The report includes robust data on the inventory of active adult properties, construction trends for the sector, market penetration rates, and key metrics of resident characteristics that influence development, leasing, and operating strategies. Emerging trends -- e.g., innovative models -- round out the insights.

To download the white paper, click here