New supply of senior housing struggles to keep up with growing occupancy rates

Senior housing occupancy rates are climbing quarter after quarter and new supply is struggling to catch up, according to the latest quarterly report from the National Investment Center for Seniors Housing & Care (NIC).

The senior housing occupancy rate in the United States increased 0.7 percentage points to 88.7% in the third quarter of 2025 from 88.0% in the second quarter of 2025. It was the seventeenth consecutive quarter of occupancy rate increases.

Independent living occupancy climbed above 90% for the first time since 2019, reaching 90.2%, an increase of 0.5 percentage points from the second quarter.

Assisted living occupancy jumped to 87.2%, an increase of 0.9 percentage points from the second quarter. This type of senior housing serves older adults who need assistance with common daily activities.

Active adult occupancy stood at 92.1%, down 0.2 percentage points from the second quarter, but still well above 90% occupation. These communities are growing in popularity among mostly healthy adults age 55+ who want to live in communities designed for active lifestyles and interaction with peers and who do not yet need or want on-site healthcare services.