What Will Shape the Next Decade of Active Adult Development

What Will Shape the Next Decade of Active Adult Development

The next phase of active adult growth will not be defined by age qualification alone. It will be shaped by how well communities respond to changing resident expectations around wellness, technology, sustainability, and everyday quality of life. The category is evolving, and the projects that succeed over the next decade will be the ones designed for where demand is going, not where it has been.

For developers, this means active adult can no longer be approached as a lightly modified multifamily product. The strongest communities are increasingly being designed around a more specific resident profile: independent adults who want convenience, connection, and environments that support active living. Research helps identify the trends. The real opportunity lies in translating them into product decisions that hold value over time.

The Market Is More Than Doubling

The global active adult community market was valued at $42.8 billion in 2024 and is projected to reach $114.5 billion by 2035, a compound annual growth rate of 9.36%, per Market Research Future. That trajectory places active adult among the fastest-growing segments in residential real estate globally. The growth is structural. The 55-plus population is projected to grow 20% over the next decade, expanding the demand pool automatically.

What Residents Will Expect

Three resident expectations are reshaping what active adult product needs to deliver:

• Wellness at the center, not the perimeter: Fitness centers are the floor. The communities pulling ahead are building programming around mental health, chronic condition management, and social wellbeing alongside physical fitness. Nearly 70% of prospective active adult buyers prioritize access to fitness facilities and recreational activities
• Technology that works out of the box: Approximately 60% of older adults express strong interest in smart home features including security, health monitoring, and energy management. Communities wired for this at construction have an advantage that is difficult to retrofit
• Environmental quality: Nearly 65% of prospective buyers are willing to pay a premium for energy-efficient features and sustainable materials. This is a rent-premium signal, and it should be treated as one

Where the Product Is Moving

Fitness centers lead in demand; swimming pools are the fastest-growing amenity category. Suburban locations are gaining on urban as the preferred setting, driven by space, lower cost of living, and community-focused environments. The 55-64 age group holds the largest market share today; the 65-74 group is growing fastest.

Independent living communities hold the largest product segment. Assisted living is the fastest-growing, which signals a maturing market where residents are aging in place and operators who can serve a broader acuity range will have an advantage.

What This Means for Terry Collier & Associates

As the expectations of active adult residents evolve, so does our approach to development. We are not building static communities. We are building environments that can adapt to changing preferences around wellness, technology, and social connection.

That means prioritizing flexible amenity spaces, integrating technology infrastructure from the outset, and designing programming that can scale with the resident base. Our objective is to deliver communities that remain relevant not just at opening, but throughout the full lifecycle of the asset.

Source: Active Adult Community Market Growth, Trends Report 2035, Market Research Future, February 2026