Senior housing occupancy increased for the 18th straight quarter at the end of 2025, according to data from the National Investment Center for Seniors Housing & Care (NIC).

Across all types of senior-specific housing, occupancy increased 2.2% to 89.1% in 2025, with almost 635,000 occupied units. Active-adult occupancy, meanwhile, nearly hit 92%; independent living occupancy surpassed 90% and assisted living occupancy was nearly 88%.

Occupancy growth was even steeper in primary markets, with occupancy increasing by almost 20,000 units or just over 3%.

At the same time, inventory growth stalled, with less than 1,900 units added to the market during the fourth quarter, an increase of just 0.6% from the third quarter.

“With the first baby boomers turning 80 in 2026, we anticipate that the demand for housing and services will continue to grow,” Lisa McCracken, head of research and analytics for NIC, said in a press release. “The rising occupancies and low inventory growth is going to lead to some real-life challenges for older adults and their families in certain markets.”

Middle-income seniors stand to be affected most by projected shortages — those who don’t qualify for subsidized housing but can’t afford new construction.

That’s why there’s a growing need for “middle-market” housing, NIC said — especially in markets that are nearly full, like Boston, which has 93.1% senior housing occupancy. Senior housing markets across the country are filling quickly, though. In fact, only five major markets in the United States had occupancy rates below 87%, with the lowest in Miami (85.4%), Atlanta (85.5%) and San Jose (86.1%).

“The reality is, if there are limited options available, others may step in to provide alternatives if the senior housing supply is constrained,” said McCracken.