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Miami Herald
9 hours ago
- Business
- Miami Herald
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." Related Articles Gen Z Is Significantly More Afraid of This Trend Than Older GenerationsSocial Security Claims SkyrocketIt's Not Gold-Digging, but Gen Z Will Marry for Money, Predicts ExpertGen Z's Trauma Therapy Compared to Millennials, Boomers 2025 NEWSWEEK DIGITAL LLC.
Newsweek
13 hours ago
- Business
- Newsweek
Why More Boomers Are Deciding to Rent
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 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. Composite image created by Newsweek. Composite image created by Newsweek. Photo-illustration by Newsweek/Getty/Canva Why Are More Seniors Renting? 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. Financial Strains 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." What Happens Next 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."
Toronto Sun
2 days ago
- Business
- Toronto Sun
Toronto residents turn to long-term renting
The city is facing a need for more family-sized rental units. Reviews and recommendations are unbiased and products are independently selected. Postmedia may earn an affiliate commission from purchases made through links on this page. While apartment renters still make up the majority of renter households, interest in houses for rent is clearly rising This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The future of Toronto belongs to renters. But, as a report from Point2 Homes demonstrates, that doesn't mean single-family homes are becoming obsolete. 'As housing prices continue to soar in Toronto, more residents are turning to long-term renting — not only in apartments, but also in single-family homes,' said Alexandra Ciuntu, author of a Point2Homes report called Houses Over High-Rises: Canada's Growth in Single-Family Renter Households Outpaces Multifamily. 'The city is adjusting to a new reality where renting is no longer a temporary phase, but the primary way many people secure stability, space, and comfort in a housing market that's rapidly closing off traditional paths to ownership.' Between the last two Census reports, single-family rentals in Toronto grew by nearly 9,000 units, while multifamily rentals increased by more than 23,000 units. However, the former's growth rate of 19 per cent outpaced the latter's 4.9 per cent. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'While apartment renters still make up the majority of renter households, interest in houses for rent is clearly rising: the share of single-family renter households went from 8.9 per cent in 2016 to 10 per cent in the most recent Census,' Ciuntu added. The Point2Homes report cites higher interest rates — and therefore tightening mortgage costs — as an outsized reason for Toronto's growth of rental households, noting they grew at twice the pace of homeownership dwellings between 2016 and 2021. Toronto-based Isaac Quan, managing broker of Living Downtown Realty, has clients who could purchase single-family homes but, for a variety of reasons, have instead chosen to rent such homes. 'They don't want to buy right now because they think the market may drop or interest rates are too high and they're not sure what's going to happen with their jobs, but they need to live somewhere, so the safest thing for them is to rent a place first,' Quan said. This advertisement has not loaded yet, but your article continues below. He added that, of the cohort choosing to rent houses instead of condos, they tend to be families and prefer areas like Midtown and Leaside. 'They don't want to live downtown with their young kids and they need larger rooms,' Quan continued. 'I have a client right now who just rented a house waiting for the market to settle, but I'm also hunting for a house for him and his family to buy and live in.' However, there's an unmistakable trend occurring in Toronto. Most younger people in the rental market will remain there for the rest of their lives, should they remain in Canada's largest city. But, as Quan reminds, that isn't uncommon by global standards. 'It will be more like Hong Kong or Singapore, or some of the more expensive Asian countries where everyone just rents,' he said. 'You'll have to be a multi-millionaire in Toronto to own.' According to Tony Irwin, president and CEO of the Federation of Rental-Housing Providers of Ontario, there's traditionally been a stigma attached to renting, but — echoing Quan — he says that's wrong-headed. 'In lots of other parts of the world, even other parts of Canada, there's a greater acceptance of renting than perhaps there is [in Toronto],' Irwin said. As rental demand grows among wider swaths of the population, small multifamily dwellings won't cut it anymore. 'There's a need for more family-sized rental units,' Irwin said. Toronto & GTA MMA World News Sunshine Girls
Yahoo
6 days ago
- Business
- Yahoo
These 15 Suburbs Now Have More Renters Than Homeowners — What's Driving the Shift?
Buying a home in the suburbs has long been a part of the American dream because it gives you an affordable place to live (and own) with a lot more room than you would find in big cities. But that's changing in many suburban communities — or at least the homeownership part, anyway. A large number of U.S. suburbs have more renters than homeowners, according to a new study from Point2Homes. The trend has been driven by several factors, including record-high home prices, changing lifestyles and a desire for more mobility. Explore More: Read Next: Between 2018 and 2023, the number of renter households increased faster in the suburbs than the main city in five of the 20 largest U.S. metros — including Dallas and Miami. During the same period, 15 suburbs switched from owner-majority to renter-majority. An estimated 203 suburbs nationwide currently have more renter households than owner households. That number is actually down from 233 in 2018. But as Point2Homes pointed out, the figure 'remains high' considering that suburbs have traditionally been 'oases of homeownership' away from the renter-majority urban spaces. Today, around 6.08 million households rent a suburban home in the areas Point2Homes analyzed — an increase of around 231,000 since 2018. In 15 suburbs, the number of renter households more than doubled between 2018 and 2023. For its study, Point2Homes researched the 20 largest U.S. metros by population as well as suburbs with at least 10,000 residents. It then analyzed U.S. Census Bureau data to identify suburbs and its own internal data on rentals nationwide. Check Out: Here's a look at 15 suburbs that flipped from owner majority to renter majority in the space of five years: Suburb Renter Share 2018 Renter Share 2023 Bound Brook, New Jersey 49.9% 58.2% Leisure City, Florida 46.6% 54.7% Brookline, Massachusetts 49.5% 53.9% Farmers Branch, Texas 47.1% 53.9% North Arlington, New Jersey 47.9% 53.6% Lauderdale Lakes, Florida 45.9% 52.8% Gary, Indiana 48.7% 52.6% East Franklin, New Jersey 42.4% 52.1% King of Prussia, Pennsylvania 41.1% 52.0% St. Cloud, Minnesota 48.3% 51.4% Watertown, Massachusetts 48.0% 51.2% Blue Island, Illinois 49.1% 50.9% Secaucus, New Jersey 42.2% 50.7% Sumner, Washington 48.9% 50.2% Garrison, Maryland 47.8% 50.1% In a December 2024 report, CBRE noted that a 'significant affordability gap' has driven a growing number of Americans to choose renting over homeownership. At the time of the report, average monthly mortgage payments for new homes were 35% higher than average apartment rents. Even when (and if) home prices moderate, CBRE expects continued growth in the rental market. Another trend driving the shift is that developers are moving their attention away from downtowns, urban cores and main cities, according to Point2Homes. Many are now focused on 'expanding outwards' toward towns and suburbs surrounding big cities, with the aim of giving renters with more space and better amenities. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Unreliable SUVs To Stay Away From Buying Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on These 15 Suburbs Now Have More Renters Than Homeowners — What's Driving the Shift?
CNBC
12-06-2025
- Business
- CNBC
White picket rents: Tenants are flooding the suburbs where they can't afford to buy
Renting is taking off in the suburbs as homeownership remains out of reach for many would-be buyers. Between 2018 and 2023, rentership surged by at least 5 percentage points in 11 out of 20 suburbs surrounding the largest U.S. metro areas, according to a recent analysis by Point2Homes, a rental market research company. During the same period, 15 suburbs went from being predominantly composed of homeowners to majority-renter communities. The trend spans fast-growing Sun Belt metros like Dallas, Houston and Miami as well as Northeastern cities like Boston and Philadelphia. In five of those top 20 metro areas — Dallas, Minneapolis, Boston, Tampa and Baltimore — the suburbs are gaining renters faster than the urban centers they surround, Point2Homes found. The share of residents who rent surged in the Dallas suburbs by 17.6% from 2018 to 2023, while that rate rose just 7.9% in the city itself — with the nearby suburbs of Frisco, McKinney and Grand Prairie each gaining over 5,000 renter households apiece during that period. Back in 2018, it was harder to buy a home in Dallas County, where most of the city sits, than it was in the metro area's more suburban counties, like those including Frisco, McKinney and Grand Prairie — suburbs where the ranks of renters have swelled faster than virtually anywhere else, Point2Homes found. That's no longer the case: Homebuying is now more difficult in the suburban counties surrounding Dallas than it is in Dallas County itself, the NBC News Home Buyer Index shows. Housing affordability is a nationwide problem spanning cities and suburbs alike. Mortgage costs have risen sharply since the pandemic, pricing out many prospective buyers in all sorts of in-demand areas. Average interest rates on the popular 30-year fixed home loan currently hover just under 7%, levels not seen since before the 2008 financial crisis. In a market this tough, some housing experts say the proliferation of rental properties has helped keep suburban lifestyles accessible to people who otherwise couldn't afford them. "You have your own land, you have kids or you have a dog, and you want that space," said N. Edward Coulson, a professor at the University of California, Irvine, and the director of its Center for Real Estate. "They get all that amenity from having a single-family home." Mark, a suburbanite just outside Chicago who asked to be identified by his first name to avoid professional blowback for weighing in on hot-button housing issues, said the type of property he has rented for three years is out of budget for him to buy. He estimated many comparable properties in the area would cost 30% more in monthly housing payments than his current rent, and he's considering leaving the area so he can purchase someplace else. "If I want to stay here, it's basically not tenable," Mark said. Andrew Decker, a renter in Lake Villa, Illinois, halfway between Chicago and Milwaukee, said he and his family would love to buy the property where they live now, which he said was offered to him for $340,000. "We would like to make it our forever home if we could afford it, but it's just so expensive," Decker said. "If they were to come at me and tell me that, 'Hey, you can buy this house for 200 grand today,' I'd pull the trigger tomorrow. I wouldn't even hesitate. But 340's crazy." Tara Raghuveer, who runs the tenant advocacy group Tenant Union Federation, said affordability issues that have fueled the suburban rental boom threaten to push people farther from urban cores. "As people are moved out of the city, they're further from transportation, they might be further from employment, they might be living in homes that are not necessarily connected to other people like them, which impacts things like child care, Social Security," Raghuveer said. Landlords, however, tout the benefits that come from renting in the 'burbs. "The ability to have one payment that covers all your expenses generally — you don't have to deal with the mortgage payment and the home insurance and maybe the HOA and then a lot of maintenance expense, so on — has been something that for a lot of people has been worth it," said George Ratiu, vice president of research at the National Apartment Association trade group, which represents rental operators. Developers have also been building different types of properties for suburban tenants, including multifamily complexes. Jay Parsons, a housing economist and host of "The Rent Roll" podcast, points to the rise of "suburban downtowns," partly fueled by the pandemic-era shift to remote work. These mixed-use developments are typically aimed at offering younger families a balance between urban convenience and suburban amenities, he said. "You can still be close to your job. You can be close to nice restaurants and shops but live in a suburban area where you're still using a car, and you still have probably a rent that's more affordable than living in most downtowns," Parsons said. Coulson doesn't expect the appeal of the suburbs to fade anytime soon, which could prop up prices in many of them for buyers and renters alike. "If you work downtown, it's still an advantage to live downtown, but it's not as great an advantage" as it used to be, he said, now that remote work remains commonplace — despite an ongoing drumbeat of return-to-office mandates. "What that does is also raise the cost of living in the suburbs, because now more people want to live in the suburbs." "That's a dynamic that's going to have to work itself out a little bit more before we know the final impact on suburban versus downtown pricing," he said.
