T
he senior living sector led all property types in returns for the first half of 2025, according to data from the National Council of Real Estate Investment Fiduciaries (NCREIF). Senior living posted a total return of 4% year-to-date, with a positive 2.08% return in the second quarter.

    This outperformance was driven by higher margins and occupancy rates in independent living settings, which require less staffing and labor expenses than assisted living facilities. Independent living returned 2.15%, while assisted living returned 1.99%. Over the past decade, both subtypes have averaged annual returns of over 5.5%.

    Senior living has consistently performed well over longer periods, outperforming the NPI by significant margins in the last 10-, 15- and 20-year intervals. The sector's occupancy rate increased to 88.1%, driven by net absorption of new senior living units.

    Independent living saw a slight increase in occupancy rates, reaching an average of 89.7%. Assisted living also experienced growth, with an average occupancy rate of 86.4%. The number of senior living properties tracked within the NPI has grown to 214, up from 56 in 2003.