More Seniors, More Housing
The U.S. population aged 75 and older is projected to grow at a rate nearly eight times faster than the rest of the population over the next decade, at 4% annually.1 This rapid demographic shift is a primary driver of demand for senior housing. As more Americans enter the 75+ age cohort, so will the need for thoughtfully designed, purpose-built living environments that cater to seniors wants and needs. Additionally, these older generations, specifically baby boomers, control a disproportionate share of the U.S. household wealth, which is likely to be directed toward maintaining a high quality of life and exceptional living experiences.2 With longevity increasing and preferences evolving, these trends are expected to drive long-term, sustained growth across the senior housing sector.
Average Annual Growth of Population by Age Tranche (as of 2024)1
Data as of July 2025
1 Worldbank.org – Population Estimates and Projections – 2024
2 Federal Reserve – Distribution of Household Wealth in the U.S. Since 1989
Supply/Demand Mismatch
Demand is expected to grow in coming years and a limited supply of new units available will likely lead to a significant supply/demand imbalance. The National Investment Center (NIC) estimates that more than 800,000 new units will need to be delivered to meet demand, and according to those same NIC estimates, the sector is on pace to deliver only 200,000, leaving a 600,000-unit shortage by 2030. As this dynamic continues, it is estimated that $1 trillion in development will be needed to meet the anticipated demand by 2041, a number far outpacing current investment.3
New Units Needed to Maintain 90% Occupancy Based on Current Penetration3
Data as of July 2025
3 NIC Map Data(R) powered by NIC MAP Vision
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