Why More Boomers Are Deciding to Rent
Baby boomers are redefining the rental market, a new study has found, with millions more older Americans now renting homes than was the case a decade ago.
Over the past 10 years, the number of renters aged 65 and older has surged by nearly 30 percent, adding 2.4 million senior renters across the country-by far the largest growth of any age group, according to new research conducted by Point2Homes.
While the number of renters declined in other age groups, particularly those aged 18 to 54, the number of seniors opting to rent has boomed.
Past generations viewed homeownership as a hallmark of independence, but today's older adults are embracing the flexibility of renting. Downsizing, relocating to warmer climates, and avoiding the burdens of home maintenance are just a few of the more positive reasons behind the trend.
But rising housing costs, inflation, and limited affordable inventory also play a critical role. As more seniors navigate retirement on fixed incomes, renting is becoming not only a practical alternative, but in many cases, a financially imperative one.
The reasons behind the growing number of senior renters are varied, a mix of both lifestyle choices and financial necessity.
"Seniors value the flexibility renting provides, which can allow them to downsize, move to better locations, or avoid the responsibility that comes with owning a home and its expenses," Alexei Morgado, a Florida realtor and CEO of Lexawise Real Estate Exam Preparation, told Newsweek.
"Owning a home can take a lot of physical energy and money. When renting, you can simply enjoy life without worrying about major repairs, the uncertainty of property taxes, or if your home will lose value or be hard to sell."
Shifting cultural attitudes toward aging and independence are also influencing this trend.
"In the past, homeownership was viewed as a key indicator of independence in retirement," says Morgado. "The cultural shift in the thinking surrounding aging has moved rapidly, however, and seniors no longer feel as though homeownership is a mainstay of independence and a comfortable life in retirement."
He notes that the COVID-19 pandemic accelerated this rethinking.
"Seniors began to focus on flexibility and ease rather than stability and predictability, which is often associated with homeownership," Morgado said. "Many seniors have begun seeking smaller properties or apartments in more desirable areas away from their long-time homes and may prefer urban and suburban environments even if there is additional cost or a long-term rental lease.
"In this way, renting allows for added freedom of movement if they feel they need to move or relocate."
The study found that many senior renters are relocating to warmer climates, particularly in Florida, which is well-known for its large retirement community. Other southern states, such as Louisiana and Texas, are also experiencing an increase in the number of graying renters.
In Baton Rouge, the percentage of properties rented by older Americans has boomed by 88.7 percent over the last ten years. Similar numbers are reported in Jacksonville, Florida, and Round Rock, near Austin, Texas.
But for many, the switch to renting isn't just a matter of lifestyle-it's a financial necessity, Morgado explained.
"The gap between owning and renting is widening, especially for seniors who rely on a fixed income. Home prices have skyrocketed in many parts of the country over the last 10 years with continued high mortgage interest rates," he said. "Rapid changes in housing demand mean that local areas with very limited affordable housing options have both renters and former homeowners looking for an affordable lifestyle. Seniors that once owned homes are now renting for value."
Steve Sexton, CEO of Sexton Advisory Group, agrees.
"This trend is fueled by both convenience and necessity; however recent economic uncertainty is the more likely driver of seniors renting in retirement," Sexton told Newsweek, noting that many retirees live on fixed incomes that have failed to keep pace with rising housing costs and inflation.
"Utilities, insurance, property taxes, and maintenance costs associated with owning a home continue to increase, while Social Security and pensions struggle to keep up," he said.
This is exacerbated by a lack of affordable homes on the market, even for those who may prefer to own, Sexton said, a problem that is getting worse over time.
As a result, "for many seniors, renting offers a more predictable and/or simplified budget in which they don't have to account for repairs and certain housing expenses."
Yet the underlying issue of housing affordability remains a serious concern. A 2024 report by the Joint Center for Housing Studies found that more than 40 percent of renters aged 65 and older spend more than 30 percent of their income on rent, the threshold at which the U.S. Department of Housing and Urban Development considers a household "cost burdened."
"The availability of affordable housing, however, is a glaring reality for many seniors," Morgado said, noting that it's "a barrier obstacle to seniors maintaining their independence."
Boomers having to rent out of financial necessity is likely to continue. For now, most adults aged 65 and older are homeowners, according to the Joint Center for Housing Studies at Harvard University. However, more than one in five older households, some 7 million, choose to rent, according to the 2023 Housing America's Older Adults study by JCHS.
Jeff Lichtenstein, CEO and broker at Echo Fine Properties, said the trend "will get worse in the next decade," with "inflation being the main culprit."
"With increased costs coming from tariffs and with cuts in the new bill and from DOGE, it puts seniors in a tough situation," he told Newsweek. "In the next decade, there will be an explosion of baby boomers in that age group. As one loses a spouse or looks at financing, there should be more of a need to rent."
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