The Number of Senior Renters Grew 30% in a Decade: Should You Be Renting in Retirement?
Written by
Vance Cariaga
Edited by
Jenna Klaverweiden
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Maybe the biggest decision you’ll make in retirement is deciding where to live, and part of that decision will involve whether to buy or rent a home. Although owning a home usually makes the most financial sense, a growing number of seniors are choosing to rent in retirement.
Renters ages 65 and over rose by 2.4 million between 2013 and 2023, according to U.S. Census Bureau data cited in a new study by Point2Homes. That represented a 30% increase and marked the largest growth of any age group by a wide margin.
If you’re weighing whether to rent in retirement, you’ll need to consider many different factors, ranging from your finances and location to your preferred lifestyle. You’ll also need to figure out which kind of rental to live in.
‘New Approach to Housing’
While many seniors gravitate toward apartment, condo and townhome rentals, a rising number are also choosing to rent single-family homes. This demographic increased 25% over the past decade, per Point2Homes.
With a record number of Americans turning 65, the ongoing shift toward rentals could signal a “new approach to housing” for many seniors, Point2Homes noted. The new approach includes stepping away from the “burdens of homeownership” — like property taxes and repairs — while also gaining the flexibility that comes with renting.
The shift toward renting has also been influenced by high housing and mortgage costs. As part of its study, Point2Homes cited a Harris Poll survey showing that older Americans have a “lower threshold” for interest rates when buying, which means they’re more sensitive to a mortgage’s financial burdens.
Should You Rent in Retirement?
Owning a home in retirement can be a “powerful financial lever” because home equity is often a retiree’s most valuable asset, according to Nancy Gates, lead educator and financial coach at Boldin, a financial planning platform that can help you strategize a retirement plan.
But that doesn’t mean owing a home in retirement is the best financial or lifestyle choice. Before making a decision, it’s important to take a good, hard look at your finances.
“To determine if renting is a better financial decision than owning, you will want to compare the total cost of ownership (including taxes, insurance and upkeep) to rental costs on a comparable property,” Gates told GOBankingRates in an email. “With mortgage rates relatively high right now, the monthly costs of renting can be lower than home ownership. And monthly cash flow can be more important than growing equity for retirees.”
If you’ve already paid off your mortgage — as many seniors have — you might be able to sell your current house and use the proceeds to buy a new, smaller home. This effectively means you’ll have free housing outside of property taxes, insurance and repairs.
But as Gates noted, retirement “isn’t just about money.” Lifestyle also matters.
“Some retirees feel deeply connected to their family home, while others want a fresh start focused on what brings them joy now,” Gates said. “Housing decisions are often shaped by proximity to loved ones, hobbies, walkability, community and convenience. The right move can reduce stress, increase freedom and help you thrive in this next chapter.”
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