Booming Business: How Baby Boomers Are Shaping Active Adult Communities

Baby boomers have influenced social and cultural shifts for more than seven decades, and now that they're entering their golden years, this demographic is redefining what it means to age gracefully.

Boomers considering relocating to active adult communities  — also known as 55+ — want low-maintenance, high-end homes in convenient locations. They expect classes and lectures, walking paths and fitness opportunities, community gardens and dog parks.

And pickleball.

Seniors are attracted to pickleball because of its simple rules and low impact on knees and joints. In a 2018 study, Western State Colorado University found that seniors who play pickleball three times a week saw improved blood pressure and cardiovascular fitness. The sport also helps with hand-eye coordination.

But many 55+ communities resist putting in pickleball courts because the loud whacking of the balls is a nuisance to neighbors.

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Gray Tsunami

The U.S. active adult community market was valued at $587.7 billion in 2022 and is expected to grow at a compound annual growth rate of 4.02% until 2030, according to a report from Grand Few Research. Baby boomers who want to explore new things, maintain a social life and enjoy their life savings are driving the demand.

Interest in investing in 55+ communities also is gaining traction. About 22% of respondents to a recent senior housing and care survey said they believe active adult communities are a profitable investment and the hottest-selling property in the senior housing market.

About 10,000 boomers will turn 65 each day until 2030 when they will account for 21% of the U.S. population.

"We're talking about 78 million boomers, and we have a huge opportunity to deliver homes to a market that can afford what we have to sell, that wants what we have to sell," said Deborah Blake, founder and principal of The Ipsum Group, a Phoenix-based consulting firm focused on 55+ communities. "And it's really about understanding what the niches are within there [because] this is the segment of the population that's really driving the needle."

Boomers are obsessed with longevity, as evidenced by their use of wearable technology such as Fitbits and smartwatches that monitor users' health and exercise and can send data to their healthcare providers.  

"We actually can prove that living in an active adult community can help you live better and longer," Blake said during a podcast interview with John Burns Research & Consulting.

Some of Blake's clients are partnering with healthcare organizations to deliver proactive wellness programs within communities and exclusive access to doctors and prescription programs.

Ipsum has a concept called the wellness suite, a multipurpose room that allows local contractors to use the room to deliver services such as massage, physical therapy, Botox parties and facials.

The 55+ communities appeal to investors because they're marketed to younger seniors, are considered lifestyle housing and don't have a healthcare component associated with them. Large age-restricted communities such as The Villages and Sun Cities are in highly saturated markets, so investors must understand resale competition as well as new home competitors.

Residents of age-qualified communities tend to be people who understand how to protect the value of their real estate investment, so they're involved in making sure the communities age well and build homeowners association reserves so they can update amenities over time.

"The active adult communities are aging very well," Blake said. "We thought they were going to smell a little bit like death and mothballs, but they don't."

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