More people these days are renting in retirement.
Between 2013 and 2023, the number of renters in the U.S. aged 65-plus went up 2.4 million, a nearly 30% increase and the largest growth of any age group.
The figures come from an analysis of U.S. Census data by Point2Homes, an online real estate marketplace, of the country’s 75 largest metro areas.
It paints a picture of shifts in the real estate landscape. America is aging as a nation, and the way people view housing may be changing, too.
According to the analysis, a big part of the renting surge among those 65-plus may be due to financial considerations. High mortgage rates, downsizing, upkeep costs and wanting to be closer to family or medical services could be motivating factors.
Mortgage rates have been hovering between 6% and 7% all year, and health care costs continue to rise for retirees, according to Fidelity’s latest health care cost estimate.
Flexibility may be another key motivator. Those who are still working into their 60s may want the ability to make job-related moves or live seasonally in different locations. The share of older Americans in the workforce is growing rapidly.
Read more: Do you own rental properties in the US? These 6 hacks can help you boost your income and lower your tax burden
The only other cohort to experience a rise in renters was the 55 to 64 age group, with nearly a half-million renters. The analysis suggests this group may be choosing to rent because of life changes such as becoming empty nesters, career shifts or divorce.
As for younger adults, they’ve fallen on the list. Those under 24 saw a nearly 9% drop in renters over the decade. They may simply be delaying independence by continuing to live with family or staying in student housing.
Perhaps unsurprisingly, the number of senior renters in the Sunbelt skyrocketed. Places like Baton Rouge, Jacksonville and Austin-Round Rock saw the number of senior renters jump by more than 80%, according to the analysis. And urban centres like New York saw 275,905 (32.6% increase) more seniors renting versus what they had a decade prior, while the Los Angeles area had an increase of more than 141,078 (30.5% increase).
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