In recent years, the mainstream of retirement housing in the United States has evolved beyond simply moving into nursing homes. It is now trending towards rental, community-oriented, intergenerational, and home-based care residential options. In this segment, we will explore the various types of retirement housing in the United States and which one might be suitable for you.
When choosing a retirement residence in the United States, it is essential to consider not only the type of housing but also the level of care needed by retirees, whether they wish to own property, and how much management fees they can afford.
Among the various types of retirement housing, the most prevalent in terms of market size is the “55+ active adult rental community.” These communities fall between conventional apartments and retirement facilities, primarily catering to retirees who can still live independently. According to data from the National Investment Center for Seniors Housing & Care (NIC), by the end of 2025, these residences had an occupancy rate of around 91.9%, with modern supply accounting for about half of the completed units in the past decade. By the second quarter of 2026, the occupancy rate further rose to 92.6%.
However, the most significant “trend” is actually aging in place. AARP’s 2024 survey revealed that 75% of Americans aged 50 and above wish to stay in their current homes for the long term, with 73% preferring to remain in their original communities. Consequently, new housing products are being developed to meet this demand, such as age-friendly designs (minimizing stairs and elevations), primary bedrooms on the ground floor, smart sensors, accessory dwelling units (ADUs), and membership-based home care services.
Furthermore, the popularity of intergenerational living and shared housing is on the rise, although these options are considered as “emerging choices” rather than being mainstream. They primarily address issues such as loneliness, housing costs, and a lack of informal caregivers post-retirement. AARP also lists shared living as a viable option to support retirement within one’s original community.
In fact, retirement housing can be categorized into three stages:
1. Healthy and fully independent: Aging in place, small single-level homes, apartments, and communities for residents aged 55 and above.
2. Independent living but averse to household chores: Independent living communities, active senior communities, and the independent living areas of CCRCs.
3. Requiring daily or medical care: Assisted living facilities, memory care units, and skilled nursing facilities.
For most American retirees, the more practical choice often involves not immediately moving into assisted living facilities but rather transitioning from larger homes to single-story residences, apartments, or age-restricted communities. As the need arises for additional support, they can then consider moving into assisted living or nursing facilities.
Next, we will introduce three stages of retirement homes:
Who wants to live in nursing homes?! Americans are exploring new living options – the hottest retirement housing in the United States | Eight innovative retirement housing concepts #USRealEstateTrends 8/29/2026
The first stage of housing is easily understood since health conditions allow for self-sufficiency. Many individuals continue living in their original homes, gradually adding features like handrails, accessible bathrooms, etc. Another option is downsizing to smaller units with single levels or apartments, making daily living more manageable while reducing costs.
Choosing a 55+ community typically involves having at least one resident aged 55 or older, with amenities such as clubhouses, pools, and social areas available. This setup is very convenient for those who are health-conscious and desire to build a social network in retirement. However, this does not equate to nursing homes as medical care or long-term assistance is usually not provided.
In the second stage, the focus is on individuals who are capable of self-care but prefer not to handle household tasks. This segment has two main subsets: Independent Living Communities, where residents can manage themselves but prefer not to cook, clean, or drive, and CCRC independent living units, which offer a comprehensive continuum of care.
CCRC independent living units serve as “independent living communities with future care assurance”: while similar to regular independent living communities for now, they allow for a transition to assisted living, memory care, or nursing units within the same community when assistance becomes necessary.
The third stage involves housing for individuals with care needs, with different living arrangements based on varying health conditions. Assisted living facilities primarily assist individuals whose physical functions are deteriorating, such as those with mobility issues requiring assistance with activities of daily living but maintain clear cognitive abilities without the need for hospital-based care. These facilities provide help with bathing, dressing, medication reminders, toileting, meal services, among others.
Memory care units cater to individuals with dementia, offering specialized care to prevent wandering, establish routines, and address behavioral issues. Suitable for those who can still walk but frequently get lost or forget simple tasks, memory care focuses on managing wandering, agitation, and cognitive decline besides residential assistance.
Professional nursing facilities cater to residents with high medical, nursing, or rehabilitation needs where self-care ability is generally low. These facilities specialize in intensive care for conditions like post-stroke care requiring feeding tubes, wound care, and intense rehabilitation, making it the highest level of care among all residential options.
In addition to these traditional types of retirement housing, the United States is witnessing the emergence of various innovative forms of retirement residences. These new concepts revolve not only around architectural innovations but also changes in aspects such as communal living arrangements, care services provided, and resident involvement in management.
Below are eight types of retirement housing suitable for different demographics and needs:
Each residence retains its private living spaces, kitchen, and privacy, but homes are centered around communal areas such as living rooms, dining halls, gardens, or workshops where residents dine, engage in activities, and manage the community together.
Take, for example, Silver Sage Village in Colorado, composed of 18 families who share around 5,000 square feet of common space; neighbors may assist with meal deliveries, dog-walking, or medication pick-ups, but the community itself does not offer professional care.
Unlike traditional 55+ communities managed by property companies, these communities are resident-governed, emphasizing neighborly support to combat loneliness and reduce reliance on institutional care. With smaller homes and more significant communal spaces, they are ideal for healthy, socially-minded retirees who wish to engage in community affairs.
Renting out empty rooms in a home to students or young professionals entails offering lower rent in exchange for companionship, shopping help, light housekeeping, or tech assistance. Platforms like Nesterly are designed for cross-generational housing sharing, matching seniors with spare rooms with young individuals in need of affordable housing.
This setup addresses two issues: elderly individuals with oversized homes, insufficient income, and loneliness; and young people struggling to afford housing in college towns or metropolitan areas.
Given that this is not a nursing facility but a way to “repurpose existing residences,” the most significant risks lie in roommate selection, lease terms, defining responsibilities, and security issues.
The new generation of retirees may choose to live together not solely based on age but also due to shared religious beliefs, cultures, environmental principles, or similar lifestyles.
For instance, Ensō Village in California integrates Zen practices, nature elements, sustainability, and “mindful aging” into a continuing care community while offering independent living, assisted living, and memory care units.
In Houston, Texas, leading the way is “Eternal Springs Plaza,” a retirement community catering to the Chinese cultural needs. Founder Zheng Zhen established the community to provide a one-stop retirement lifestyle tailored for elderly Chinese Americans, offering familiar language, cuisine, and cultural environment to allow seniors to enjoy their later years in the most comfortable and customary way.
Such retirement communities situated directly within or adjacent to universities allow residents to attend classes, utilize libraries, attend lectures, and engage in activities with students.
Lasell Village in Massachusetts located on the Lasell University campus requires residents to complete a certain number of hours annually in learning, fitness, and cultural activities. Supplementary assisted living and professional nursing care are available within the community to accommodate residents’ increasing care needs without requiring them to move elsewhere.
This living arrangement is particularly suited to retirees with high levels of education, a passion for learning, university alumni, or those who prefer not to be completely isolated from younger generations. However, many of these projects are positioned in the upper-middle-income bracket, with entrance and monthly fees that may not be economical for everyone.
Residents do not have to move into retirement communities but continue living in their homes while paying membership fees or prepaid costs to service organizations. These organizations coordinate transportation, meal delivery, home care, emergency responses, and future long-term care.
For example, Kendal at Home provides personal care coordinators who arrange home services and long-term care as members’ health conditions evolve, essentially bringing the continuum of care services into residents’ homes.
A more affordable version is the “Village Movement,” where seniors in the same community join a membership organization that provides transportation, minor repairs, shopping, and social activities by volunteers and screened service providers. This model functions as a network supporting aging in place within the existing community.
This model aligns well with most Americans’ preference to remain in their original homes during retirement. However, while the old homes need to undergo some level of accessible remodeling.
This model involves transforming traditional large nursing homes into smaller residences accommodating approximately 10 to 12 individuals each. Residents have private rooms and bathrooms while sharing kitchens, dining tables, and living rooms, blending nursing staff seamlessly into daily family life.
The Green House Project aims to replace hospital-like hallways, nursing stations, and communal schedules with a genuinely homely environment. This setup is especially suited for individuals in need of professional care but reluctant to reside in traditional nursing homes. Nonetheless, there are disparities in quality, charges, and insurance coverage across different projects.
This setup stands as one of the most prominent new models. Rather than confining dementia patients to restricted floors, they reside in environments resembling normal communities, allowing for outings to cafes, shops, gardens, restaurants, and salons within a secure perimeter.
Agrace in Wisconsin, a nonprofit care organization, is constructing a dementia village costing around USD 40 million with eight small residential units accommodating up to 65 residents at most. The village will feature walkways, cafes, and other everyday spaces, with an emphasis on integrating medical monitoring discreetly into daily living, allowing dementia patients choices, movement, and social interaction freedom.
In recent years, cruise ship retirement has emerged as a popular alternative, with two primary approaches to retiring on a cruise ship: continuous bookings on commercial cruise lines or purchasing/long-term leasing residential cruise ship cabins. This lifestyle suits individuals with good self-sufficiency, a penchant for socializing and travel, and stable chronic conditions but poses significant challenges in healthcare, finances, and living space when it comes to reality.
Thus, retirement on a cruise ship serves better as an extended travel lifestyle choice for healthy early retirees rather than a complete end-of-life retirement option. The main hindrance is that while cruise ships offer accommodation, dining, and entertainment, they cannot substitute hospitals, home care, or long-term care facilities. ◇