In 2020, the market for active adult communities catering to individuals aged 55 and older in Texas was valued at approximately $29.6 billion. It’s projected to grow at a compound annual growth rate (CAGR) of 4.42% from 2021 through 2028. These communities foster a strong sense of connection among residents—something that sets them apart from traditional neighborhoods. This emotional bond significantly enhances mental well-being and overall quality of life, which is fueling demand across the state.
Many older adults are drawn to active adult communities for the opportunity to engage in recreational and physical activities. These communities prioritize lifestyle and independence over medical care, offering a wellness-focused environment. Most residents are baby boomers, aged 56 to 76, who approach retirement with different expectations than previous generations.
In recent years, retirement communities have gained traction both among consumers and investors. The growing desire for low-maintenance, independent living—especially among those aged 55 to 64—is a major factor driving this trend. These communities typically offer compact, step-free homes that are easier to clean and safer to navigate. Many seniors opt for one- or two-bedroom units with everything conveniently located. Purchasing property in a 55+ community is often seen as a smart investment, with proceeds from previous home sales used as down payments.
Some communities also offer optional care services tailored to individual needs. Rising income levels, longer life expectancy, and a preference for independent living are expected to continue fueling market growth in Texas.
During the early stages of the COVID-19 pandemic, home demand in Texas dipped slightly, largely due to rising housing costs. Occupancy rates in 55+ communities declined temporarily as prospective residents postponed relocation decisions. However, as travel restrictions eased and case numbers dropped, occupancy rates and buyer interest began to rebound.
The temporary closure of amenities like fitness centers, game rooms, libraries, and dining halls negatively affected market performance. Still, economic recovery and new construction projects—such as Caldwell Communities’ June 2021 announcement—are expected to drive renewed growth.
The rise in lifestyle-related health issues has increased awareness around physical fitness. Active adult communities are designed to keep residents mentally and physically engaged, offering amenities like swimming pools, wellness centers, pickleball courts, golf, bocce, shuffleboard, group classes, field trips, and social clubs. Staying active in retirement not only improves quality of life but can also lead to significant savings on healthcare costs.
Texas is seeing rapid infrastructure development for senior communities, with new projects and land acquisitions underway. Notable 2020 initiatives include Arista Riverstone in Houston, The Hacienda in Austin, and Watson Branch in Mansfield (Dallas–Fort Worth metroplex).
According to the Texas Demographic Center, the population aged 65 to 85 grew by roughly 38.45% between 2010 and 2018. In Austin, 9% of residents are 65 or older, and the city saw a sharp rise in residents aged 55 to 69 over the past decade. In Dallas, nearly 24% of the population is over 50. These demographics point to strong market potential in both cities.
The market is highly competitive, with numerous housing providers operating across Texas. Key strategies include launching new facilities, acquisitions, and strategic partnerships. For example, in September 2021, Cadence McShane Construction was selected to build Century Heights in Beaumont, Texas, in collaboration with Brinshore Development and the City of Beaumont Housing Authority. Completion is expected by the end of 2022.
Leading players in the Texas 55+ active adult community market include: