U.S. Active Adult (55+) Community Market Expected To Witness A Substantial Growth Of $732.1 Billion By 2027: Grand View Research Inc.

 

The U.S. active adult (55+) Community market size is estimated to reach USD 732.1 billion by 2027, expanding at a CAGR of 4.3%, according to a new report by Grand View Research, Inc. The growing interest of older adults below 65 years of age towards maintenance-free lifestyle, structured activities, socialization, and a sense of community are the major factors driving the market. In addition, retirement not being in the eligibility criteria, and the variety of optional care and support services available at these facilities are the factors boosting the market growth.

An increasing population aged between 55 to 64 years are categorized as active adults seeking a social and friendly environment. According to the U.S. Census Bureau, baby boomers aged between 55 and 73 have brought both challenges and opportunities to the economy, infrastructure, and institutions. Active adult communities are quite similar to any other residential community, apart from their age restrictions, most of them are designed for a low maintenance lifestyle. These communities are mostly built near shopping malls, parks, restaurants, and other places for socializing, as the residents want to live a healthy lifestyle during their final years of retirement. The communities do not provide on-site dining facilities or healthcare services to the residents. The Homeowners Association (HOA) dues of these communities pay for assured communal amenities.

The U.S. active adult (55+) community market size was valued at USD 523.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of around 4.3% from 2020 to 2027. Before turning to the age of 65, many of the adults aged between 55 to 64 years seek maintenance-free living in the last years of their retirement. They move to active adult communities to involve themselves in different physical and recreational activities, which is a key factor driving the market.

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Active adult communities are an attractive option to provide an independent, wellness-centered environment by focusing on lifestyle over health care. Largely, the residents comprise of baby boomers, who today are 56 to 76 years of age and have a completely different outlook on retirement than their counterparts from previous generations.

U.S. Active Adult (55+) Community Market Report Highlights

• By gender, women held the maximum share in 2020 attributed to a greater life expectancy of women. The men segment is expected to witness a high CAGR during the forecast period attributed to postponement of disability to older ages
• Strategic initiatives undertaken by various market players are expected to keep growth prospects upbeat in the following years
• There are different types of active adult communities based on the population, including luxury communities, college town & university communities, retirement parks, golf and resort communities, religion-specific communities, active senior communities, single only communities, and gated communities. The college town and university communities are more preferred among older people who want to continue working
• Strict regulations and licensing are expected to pose barriers to new entrants.

The active adult (55+) community does not abide by federal regulations, therefore, there is no Medicare and Medicaid reimbursement. In addition, healthcare services are not provided in these facilities. This is the major restraining factor associated with active adult communities.

Factors such as growing income for the senior population, along with increased life expectancy, and the desire to live in an independent living facility for a maintenance-free lifestyle is expected to fuel market growth over the forecast period. Many active adult (55+) communities provide optional care services to the residents based on their requirements.

The women segment dominated the U.S. active adult (55+) community market and accounted for the largest revenue share of 55.3% in 2020. The men segment is expected to emerge as the fastest-growing segment during the forecast period. An active adult (55+) community is an age-qualified living facility for seniors above 55 years of age (also termed as young adults), offering them the freedom to live an active life along with staying in touch with the community. The increasing life expectancy of men, postponement of disability to older ages, and an increased percentage of remaining life spent active are some of the major factors behind the fast growth of the men segment in the market for the active adult community.

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According to mid-year estimates published by the U.S. Census Bureau, the majority of the baby boomers have been turning to 65 years of age and by 2030, the remainder will also reach age 65 and account will for approximately 21.0% of the total United States population. Among the senior living market, the active adult community has gained a huge market share and investor appeal in the last few years. This is attributed to the growing demand for independent and maintenance-free living among the age group of 55 to 64 years. Active adult housing is a purpose-built multifamily rental housing for younger seniors. It has a heavy emphasis on community space and activities. In the U.S., the active adult community is often referred to by different names. They are termed as lifestyle seniors housing based on the type of population it caters to. Sometimes used in reference to multifamily, but most 55+ communities are sold as single-family housing communities.

The market is highly competitive with the presence of a large number of housing unit providers in the country. New facility launch, acquisition, and partnerships are some of the key strategies followed by the major players in the market. Some of the prominent players in the U.S. active adult (55+) community market include:

·        The Villages

·        The Pulte Homes Corporation

·        Laguna Woods Village (LWV)

·        Green Valley Recreation

·        Holiday City - Berkeley

·        On Top of the World

·        Century Village

Grand View Research has segmented the U.S. active adult (55+) community market on the basis of gender:

U.S. Active Adult (55+) Community Gender Outlook (Revenue, USD Million, 2016 - 2027)

·         Women

·         Men

List of Key Companies of U.S. Active Adult (55+) Community Market

·         The Villages

·         The Pulte Homes Corporation

·         Laguna Woods Village (LWV)

·         Green Valley Recreation

·         Holiday City - Berkeley

·         On Top of the World

·         Century Village

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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