Senior housing’s occupied unit tally reaches new record high

Inventory growth in the senior housing sector during 2022 was the slowest in nine years, and almost 20 percent fewer units were under way entering 2023 relative to the five-year annual average preceding the pandemic, according to Marcus & Millichap.

This confluence of returning demand and descending development, paired with longer-term tailwinds from an aging baby boomer cohort, supports a more upbeat sector outlook.

Locations with favorable weather and quality-of-life factors, such as the Sun Belt, have been particularly desirable migration destinations recently. Many older adults are choosing to relocate to these metros, while others are following their families who have moved to stay close by. Of senior housing markets with at least 5,000 units of inventory, seven of the top 10 most recovered metros relative to 2019 occupancy are located in Florida, Texas or Arizona.

Conversely, the locations that have the most ground to make up are largely primary market