More Than Half of Primary Markets Have 90% Average Senior Living Occupancy Or Higher 

Senior living occupancy is on track to reach record levels with more than half of primary markets reporting over 90% average occupancy.

The national senior living average occupancy rate in the 31 primary markets NIC MAP tracks reached 90.4% in the third quarter of 2026, representing a gain of 60 basis points versus 2Q26, when average occupancy registered at 89.8%. The number of occupied units reached 644,428 in the third quarter of this year, a 70-basis point increase compared to 639,871 in the second quarter of this year.

Occupancy has risen across all senior living product types over the past quarter. Independent living average occupancy rose to 91.7%, up from 91.3%; assisted living rose to 89.1%, up from 88.3%; and active adult rose to 93.2%, up from 92.6%. Of the 31 primary markets NIC tracks, more than half, 16, are now at 90% occupancy or higher, up from 15 in the previous quarter.

Senior living construction continued to lag behind absorption in the third quarter. Senior living companies had a total of 16,159 units in development in the third quarter of this year while new inventory growth remained at 0.4% year-over-year, representing near record lows. Meeting the whole of senior living demand would require building more than 100,000 units annually through the 2030s, according to NIC MAP.

The senior living industry is on track to develop just 10,445 units per year, according to NIC MAP.

“The low levels of new supply being delivered when we are entering into a time when there is such opportunity and need ultimately hurts the customer,” Lisa McCracken, NIC’s head of research and analytics, told Senior Housing News. “We are hopeful that the conditions will change in a way that supports more development activity in a way that is a winning proposition for all parties.”

Over the past several quarters, NIC has seen a widening gap between what Baby Boomers will need and what the industry is producing, according to a press release.

“We’re hearing anecdotally that planning activity for new development is picking up, but until we see the trend reflected in the data, there will continue to be increasing pressure—and opportunity—to meet demand,” McCracken said in the release.

Arick Morton, CEO of NIC MAP, said new construction alone won’t get the industry to the level it needs, and the industry needs to consider “adaptive reuse of large buildings, expansion of existing properties or other creative ideas.”

McCracken told SHN that while adaptive reuse projects continue to be minimal within the market-rate developments, they are more common in affordable and subsidized projects.

“We think this is a significant opportunity if you can find the right property and location, particularly if aiming for a more middle-market type of option,” McCracken told SHN. “On the market-rate front, there are several projects whereby previously vacant mall properties are being repurposed into mixed-use developments and a market-rate 55+ component is being included.”

The Boston and San Francisco markets registered at 94% and 93.3%, respectively, representing near-record occupancy levels. The highest market occupancy NIC has ever recorded was 95.6%. Houston, Atlanta and Miami were the lowest-occupied primary markets with average occupancy rates of 87.3%, 87.2% and 86.5% respectively.

The active adult sector reached 93.2% average occupancy, representing a 1.3 percentage point increase since the end of 2025 and the highest occupancy for the product type since 2024. NIC MAP data “shows that fitness centers, clubhouses, pools and activity coordinators are the most common amenities in active adult communities, highlighting the role that wellness and social connection play in the appeal of this housing type,” according to the press release. Development for both active adult and multifamily has slowed, and the segment of the industry is working through a wave of supply that was completed over the past several years, particularly in the Sunbelt region.

Active adult occupancy reached 97.7% in Buffalo, New York and 97.4% in both Los Angeles and San Diego, while average active adult occupancy Phoenix registered at 88.7%.