A contingent of cities across the South and Sunbelt lead the way for senior housing growth this year as growth in the 65-and-over cohort and stable property metrics drive demographic tailwinds for the sector, according to a new report from Marcus & Millichap.

Orlando leads the way, as its 65-plus population is projected to grow by 25.1% by the end of 2025, while existing senior housing communities in San Francisco and San Jose will be bolstered by growth in the baby boomer generation.  Other cities in this category include Dallas Fort-Worth, Greenville, Jacksonville, Las Vegas, Minneapolis-St. Paul, Tampa-St. Petersburg, and Tucson.

Meanwhile, Sunbelt markets attracting retirees will benefit from in-migration momentum. Marcus & Millichap predicts that Florida markets like Miami-Dade will benefit from retirees seeking a favorable tax environment, while Austin and Phoenix will record strong growth among older Americans. Other cities poised to benefit from migration patterns include Charleston, Cincinnati, Denver, Houston, Milwaukee, San Diego, and Seattle-Tacoma.