Senior Housing Occupancy Climbs to 18-Quarter High as Supply Falls Short

Article originally posted on Multifamily Executive on January 16, 2026

Occupancy rates for senior housing increased in 2025 due to strong demand and limited inventory, underscoring the need for investment in new development, according to the National Investment Center for Seniors Housing & Care (NIC).

Newly released data from NIC MAP found senior housing occupancy bumped up 2.2 percentage points, ending 2025 at 89.1%. This is up 0.4 percentage points from the third quarter, marking the 18th consecutive quarter of occupancy rate increases. In addition, occupancy increased across all senior living types in the fourth quarter: Active adult occupancy reached nearly 92%, independent living occupancy was above 90%, and assisted living occupancy was 87.7%.

Occupied senior housing units went from roughly 630,000 units in the third quarter to nearly 635,000 in the fourth quarter. In the 31 primary markets tracked by NIC MAP, the number of occupied units increased by nearly 20,000 last year, a boost of over 3% compared with the prior year. Inventory growth is slim, with less than 1,900 new units opened in the fourth quarter.

“With the first baby boomers turning 80 in 2026, we anticipate that the demand for housing and services will continue to grow. The rising occupancies and low inventory growth is going to lead to some real-life challenges for older adults and their families in certain markets,” said Lisa McCracken, NIC’s head of research and analytics. “The reality is, if there are limited options available, others may step in to provide alternatives if the senior housing supply is constrained.”

According to NIC, middle-income older adults who don’t qualify for subsidized housing but lack the resources to fully pay for senior housing are especially impacted by the supply-and-demand dynamics. NIC experts emphasize the growing need for middle-market solutions in today’s environment when rising operating and development costs are causing many new communities to serve higher-income residents.

In the 31 primary markets tracked, seven saw senior housing occupancy rates above 90% in the fourth quarter compared with five in the third quarter. In addition, three markets are nearly fully occupied—Boston, 93.1%, and San Francisco and Baltimore, both at 91.9%. Five markets had occupancy rates less than 87%, with the lowest in Miami, 85.4%; Atlanta, 85.5%; and San Jose, California, 86.1%.

“A 200-basis-point gain in one calendar year is a solid rate of growth that shows no sign of slowing,” added CEO Arick Morton. “Absent new supply entering the market, it’s likely that many markets will begin to register all-time highs in the near and medium term.