With an influx of 55+ aged renters seeking to pair an independent lifestyle with access to comfortable amenities, investors and developers are paying closer attention to active adult trends in multifamily than ever before.
Consider that of the 67,500 purpose-built, active-adult housing units currently under construction, planned, or proposed across the country, close to half of those units are scheduled to be delivered in the Southeast region. That’s not an accident.
As part of a new reoccurring content series, Berkadia will be taking a closer look at states and metros where the active-adult apartment market is accumulating momentum, as evidenced by significant construction. This week we’ll be taking a closer look at how senior-friendly tax policies are helping to attract renters to the Southeast region, particularly Tennessee, Florida, and Georgia.
Over 3,000 multifamily units designed for renters in the active adult sector are under construction in Tennessee, according to Yardi Matrix, split between Memphis (2,200 units) and Nashville (940 units). In addition to wallet-friendly tax policies, the metros offer below-average health care costs and relatively affordable living costs. These factors have turned both Memphis and Nashville into strong potential landing spots for 55+ renters looking to protect their savings long into their retirement.
Florida remains a primary destination for retirees thanks to its pleasant year-round weather, plentiful amenities, and stunning beaches. Development of new multifamily units for active adults was clustered in Tampa (3,100 units), Orlando (1,370 units), and Jacksonville (990 units). Tampa boasts excellent hospitals and multiple professional sports teams. Orlando is a long-time mecca for retirees, translating to amenities galore for active-adult renters. Finally, Jacksonville offers access to two of the top hospitals in the state (Mayo Clinic and Baptist Medical Center Jacksonville), plus some of Florida’s best golf courses.
Developers are bringing over 6,000 new units geared toward active adult renters online in urban and suburban Atlanta. That’s not surprising given how many active adult trends are encouraging 55+ renters to consider Atlanta’s multifamily market as their retirement destination.
Atlanta’s plentiful perks for active adult renters range from low state and property taxes to access to world-class healthcare institutions like Emory Wesley Woods Geriatric Hospital, Piedmont Atlanta Hospital, and Emory University Hospital. An exceptional arts and food scene doesn’t hurt either.
- More questions about active-adult housing, affordable housing, or student housing? Touch base with one of Berkadia’s experienced specialty teams for helpful, actionable insights.