Luxury 55+ Living

Active Adult Industry Meeting the Booming Demand

March 25, 2024

Luxury 55+ Living

Active Adult Industry Meeting the Booming Demand

 

The Baby Boomer generation, known for its cultural impact, continues to make waves in American society as it transitions into its senior years. This demographic shift is now reshaping the multifamily housing market, and more developers, including HighGround, are keen to capitalize on the needs and preferences of this massive cohort with deep pockets. Active Adult Rental Communities were created to do just that.

Read more about Central Indiana’s growing Active Adult Market here.

As wave after wave of Baby Boomers settle into retirement, the demand for these developments is expected to surge, laying the groundwork for a thriving, and diverse, seniors housing market in the years to come.

Demand growing by the day.

As approximately 73 million Baby Boomers enter their senior years, with an estimated 10,000 turning 65 daily, the demand for housing tailored to their lifestyles is skyrocketing. This generation, characterized by a desire for active, engaged living, is seeking homes that support their on-the-go lifestyles and offer a vibrant sense of community.

Enter HighGround’s Luxury 55+ Living communities, purpose-built multifamily housing developments designed with almost-retired, part-time retired, and newly retired people in mind. These communities, growing ever more popular in the Midwest, cater to the preferences of Baby Boomers who are embracing retirement with vigor.

Defined as age-restricted, our active adult communities offer residents a range of amenities and activities geared towards promoting health, wellness, and social interaction. From resort-style amenities to a wide array of community activities, our developments provide a holistic living experience for residents seeking an enriching retirement lifestyle.

Learn more about HighGround’s Luxury 55+ Living here. 

Another key driver behind the surge in demand for active adult communities is the empty-nester, Baby Boomers that are rightsizing from larger homes to residences that require minimal maintenance without sacrificing amenities.

Not a passing fad.

Even during the height of the COVID-19 pandemic, active adult communities across the country experienced consistent demand, underscoring their resilience and appeal in uncertain times. This sustained interest has translated into strong investor interest in the asset class, with active adult living boasting some of the lowest capitalization rates among seniors housing options.

With the active adult housing market valued at over $560 billion and projected to grow steadily in the coming years, investors are increasingly turning their attention to this lucrative sector. And while, challenges such as inflation, rising interest rates, and labor costs may pose short-term obstacles, the long term outlook for active adult communities remains bullish.

HighGround currently has GrandView (managed by Greystar) in Westfield, Indiana and Vista in Noblesville, Indiana under construction. Both communities are expected to be leasing in 2024. CityView, a public private partnership with the City of Fishers, is expected to begin construction later this year.

All three projects are age-restricted and a part of the HighGround’s Luxury 55+ Living portfolio of multifamily developments.