- Senior housing occupancy hit 89.1% at year-end 2025, the highest in 18 quarters.
- Demand outpaced supply, with less than 1,900 new units delivered in Q4 2025.
- Middle-income seniors especially affected by limited inventory and rising costs.
- Seven primary markets surpassed 90% occupancy, with Boston leading at 93.1%.
Demand Outpaces Supply
The Multifamily Executive reports that senior housing occupancy rates climbed to 89.1% by the end of 2025, as per NIC MAP data released by the National Investment Center for Seniors Housing & Care. The sector posted its 18th straight quarter of occupancy gains as supply growth lagged rising demand, with less than 1,900 new units added in the fourth quarter across the country.
Market-by-Market Trends
The number of occupied senior housing units in the 31 largest US markets grew by nearly 20,000 units year-over-year, a 3% increase. Seven of these markets saw occupancy rates exceed 90% in Q4 2025, up from five the prior quarter. Boston posted the highest rate at 93.1%, while Miami, Atlanta, and San Jose recorded the lowest, all under 87%.
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Middle-Income Squeeze
NIC analysts highlighted the pressure on middle-income seniors, who often don’t qualify for subsidized housing and struggle with the rising costs in the current supply-constrained environment. New supply tends to target higher-income residents due to increasing operating and development costs, leaving fewer affordable options in the middle market.
What’s Next
With the first baby boomers turning 80 in 2026, demand for senior housing is expected to strengthen further. This demographic shift is already contributing to a notable surge in demand across many US markets, and absent a significant boost in new supply, markets may hit record occupancy highs in the medium term. That trend is amplifying challenges both for families seeking housing and for developers looking to meet the sector’s evolving needs.
