Occupancy Data Shows Some Senior Living Residents Now Prefer Larger Units 

Rising occupancy in larger units, particularly in assisted living, is evidence of an ongoing shift in preferences among prospective senior living residents.

“Ten years ago, three-bedroom assisted living units carried average occupancy of 74%, suggesting they were mismatched with the needs or preferences of residents at the time,” wrote NIC Senior Principal Omar Zahraoui. In 2025, assisted living units with three or more bedrooms carried average occupancy of 88%, “hinting that preferences in independent living may be bleeding into assisted living as residents transition through the continuum of care,” he wrote.

“This trend may reflect a generational shift in expectations, or perhaps a cohort of residents entering assisted living with greater financial means or stronger lifestyle preferences for space, privacy, and comfort,” Zahraoui wrote.

Occupancy trends in the second quarter of 2025 show that larger-sized units carry higher census than smaller ones. Across senior housing as a whole, three-bedroom units averaged 94% occupancy, followed by two-bedroom units at 91%. One-bedroom units averaged 88% occupancy, with studios trailing behind at 87%. The occupancy spread remains largely similar in independent living specifically, though is a closer spread in assisted living, ranging from 86% for studios and 88% for three-bedroom.

“While assisted living still maintains relatively high occupancy for studio units, there is now a clear pattern between unit size and occupancy across the board, particularly in independent living,” Zahraoui wrote. “This suggests increasing resident preference for more spacious accommodations, even among residents requiring assistance.”

NIC data also indicates that developers and owners are following these trends by building communities with larger units. About 20% of units under construction in NIC MAP’s 31 primary markets during the second quarter of 2025 had three or more bedrooms. In 2014, just 2% of all units under construction in primary markets were for three or more bedrooms. In 2014, a little more than half (51%) of senior living units under construction were studios. That share fell to a little more than one-third (35%) in the second quarter of 2025.

According to NIC’s data, independent living properties tend to skew toward one- and two-bedroom units, while assisted living properties are weighted toward smaller units, such as studios. Two-bedroom and larger units are more commonly seen in independent living settings, where couples tend to reside together, according to NIC.

Studios still make up 40% of all unit types, while one-bedroom units make up 38%. Two-bedroom units make up 18% of all senior housing units, while units with three or more bedrooms make up 3% of that total.

Although the distribution of senior living community unit mixes has not changed radically in the last 10 years, what has changed are resident preferences for them.

“Looking ahead, larger units may gain further traction among middle-income residents seeking shared living arrangements that lower costs while enhancing efficiency and social connection,” Zahraoui wrote. “As the aging population continues to transform, the most successful properties will be those that align care needs with lifestyle aspirations, designing unit mixes that reflect not only acuity, but also the changing values and expectations of the next generation of residents.”

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