7 Reasons Baby Boomers Should Rent Instead of Buy
For some Baby Boomers, buying a new retirement home may not be the best idea. In fact, there are many benefits to renting instead. One in five older households (over 7 million people) rent, so you’d be in good company! But what are some other reasons you should rent? Is it more convenient? Less expensive? Can it help you make new friends and find a much-needed social community? Good news: We have the answers to all those questions and more! Whether you’re retired or retiring soon, here are SEVEN great reasons to consider renting a home.
More Cost-Effective Than Buying
Predatory lenders giving money to people who could not afford to repay their monthly mortgages was a major cause of the housing market crash. Using too much of your income for a house payment can be a dangerous financial practice that can lead to economic hardship. If you’re a senior living on a fixed income and it would behoove you to live below your means, this is something to consider. And if you still want to buy a home but can’t afford it, don’t fret. Dave Ramsey of Ramsey Solutions wrote in a Facebook post: “Trust me, ‘house poor’ isn’t something you want to be. Until you’re actually ready to buy, renting is never a waste of money.”
Offers Flexibility When Choosing Where to Retire
For seniors who want to travel and explore the world without the commitment of home ownership, the U.S. offers a wealth of options in 55+ rental communities! These communities cater specifically to the active adult demographic, providing a variety of housing options from individual homes and apartments to condos situated in retirement or active adult communities. Designed to meet the needs and preferences of those aged 55 and older, these communities offer amenities and lifestyles suited to this stage of life.
Options range from the luxurious to the more modest, ensuring that there’s something for every budget and taste. For example, communities like Heritage Shores in Bridgeville, Delaware, offer rental opportunities in a 55 Plus Rental Community setting, providing access to golf courses, clubhouses, and other recreational facilities. Fortunately, many rental communities have seen this demand and answered it!
“We’re building 800 rentals in four Sutton Landing buildings in New York, with 200 units in each location,” says Engel Burman, a real estate developer. “We know there’s demand for luxury rentals in active-adult communities, but we’re also doing this now because we’ve seen a paradigm shift in attitudes about rental housing. Seven to 10 years ago, we couldn’t have built these communities. There was community and government resistance to rental housing because it was considered transient.”
Reduces Financial and Housing Risks for Retirees
Economic downturns can make buying a home feel riskier. While purchasing a home in a down economy might be attractive to young investors seeking potential gains, it may not be the best option for seniors. Seniors often prioritize financial stability and minimizing risk. Renting in an uncertain housing market can be a more financially secure option, shielding them from potential risks associated with buying. Additionally, renters don’t have to shell out money for a down payment, closing costs, or home inspections. Better yet, renters aren’t affected when property value goes down, either.
Fewer Property Taxes
Some states have astronomical property tax rates, which can increase rental costs for tenants. While renters don’t directly pay property taxes, the money saved on property taxes compared to buying a home can still be used toward other expenses or saved! Renters also don’t have to pay mortgage interest or homeowner insurance. According to Investopedia, the national average cost of homeowners insurance was $2,601 per annum as of October 2024. Meanwhile, renters pay around $263 a year for insurance.
Access to Amenities
Many 55-plus apartments and homes in active adult communities offer great amenities! There’s home maintenance, yard upkeep, social programs, clubhouses, transportation, pools, fitness centers, and even on-site medical care. Others have clubhouses, which are hubs for all the goings-on in the community! They’re great places to socialize, meet your neighbors, and even have parties. Oh, and don’t forget all the classes that these communities offer! From salsa dancing to exercise classes to lifelong learning opportunities, you’ll always have a chance to do something fun and fulfilling. Compare that to a regular neighborhood. These days, you might not even get the opportunity to meet your neighbors, and you certainly won’t have the opportunity to take classes or learn a new skill.
Fewer Responsibilities
Owning a home is a huge responsibility! You have to do yard work and take care of any home repairs, or hire someone to do it for you. Renting a retirement home alleviates most of this responsibility, leaving you with more time to enjoy your golden years. Plus, did you know that on average, it costs about $6,548 per year to maintain a single-family home? Home maintenance costs continue to rise, especially in an economy as volatile as our current one. So, if you don’t want to pay through the nose for home repairs, you might want to consider renting!
Social Opportunities
Research shows that seniors who are actively involved in social programs and have relationships with their peers are happier and healthier. Renting a retirement home in a community gives you instant access to people the same age who have the same interests. There’s another consideration here. Social isolation and loneliness are bad for your health. So bad that it can increase your risk for several diseases, including heart disease, Type 2 diabetes, depression, anxiety, and even dementia. Yes, folks, you read that right: being lonely can increase your risk of developing a memory disorder. So, if you live alone right now and feel isolated, you might want to look into renting in an active adult community! Who knows? This time next year, you might be a happier, healthier version of yourself!
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Originally published March 20, 2025
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