As the U.S. population continues to age, a growing number of baby boomers — those born between 1946 and 1964 — are opting to rent rather than own. While homeownership has long been considered the American dream, this 76 million-strong generation is redefining what financial freedom and lifestyle flexibility look like in retirement. According to Freddie Mac, more baby boomers are selling their homes and embracing the benefits of leasing instead.
Why Boomers Are Choosing to Rent
Today’s boomers are swapping mortgages for mobility, often upgrading to rental properties with more space and premium amenities. Here are key reasons driving the shift:
- Affordability and Predictability: Renting often offers more predictable monthly expenses than owning, with no surprise repair bills, property taxes, or insurance premiums.
- Low-Maintenance Living: On-site services like package delivery and plant care — offered in communities like those developed by Optima Inc. — add convenience and comfort.
- Freedom to Travel: Renting allows boomers to “lock and leave” without worrying about property upkeep while away.
- Liquid Assets: Selling a home frees up capital to invest in non-real estate ventures or cover retirement expenses.
- Flexibility: Renters can move closer to children, grandchildren, or new opportunities without the long-term commitment of ownership.
- Simplicity: Many prefer to own just one property — often a vacation or primary residence — rather than juggling multiple homes.
More Baby Boomers Are Not Downsizing, But Rightsizing
Contrary to past trends, many boomers aren’t looking to downsize. Instead, they want homes that accommodate family visits and lifelong possessions. That means rental communities need to offer spacious layouts, smart storage, and amenities that support a full, active lifestyle.
Boomers also have distinct tastes compared to younger renters. While millennials may seek climbing walls and rooftop lounges, boomers are more interested in walking trails, dog parks, and wellness programming.
Rental Models for Boomers
With an 18-year age range, boomers have diverse preferences, and several rental models cater to their needs. Each offers distinct advantages and potential drawbacks.
Traditional Apartments with Amenities
These rentals, often in multistory buildings with elevators or low-rise garden-style complexes, are popular for their modern designs and amenities.
Pros:
- Prime Locations: Newer buildings, like RMK Management Corp.’s Central Station in Evanston, Ill., are often walkable to restaurants, shops, transit, and universities. Proximity to healthcare facilities is a bonus, says Desen Lin, assistant professor of finance at Cal State Fullerton.
- Thoughtful Design: Single-level, open floor plans with quality finishes appeal to boomers, notes Diana Pittro, executive vice president at RMK Management Corp.
- Robust Amenities: Fitness studios, pools, dog parks, and community spaces, like those at Optima Verdana in Wilmette, Ill., or The Residences of Wilmette, enhance convenience. Concierge services add value.
- Move-In Ready: Turnkey units save time and renovation costs.
Cons:
- High Rent: Operational costs can drive up prices, and some amenities may not appeal to boomers.
- Noise: Younger residents may create a livelier environment than preferred.
- Limited Space: Studios or one- to two-bedroom units may not accommodate family gatherings, and older buildings may lack ADA-compliant features.
Build-to-Rent (BTR) Homes
Emerging post-Great Recession, BTR homes offer the feel of a single-family home without ownership responsibilities, appealing to boomers who want space.
Pros:
- Spacious Layouts: Multiple bedrooms, yards, and second stories suit boomers’ needs.
- Community Feel: Clubhouses and shared spaces foster camaraderie across ages, says John Acken, executive vice president at Capstone Communities.
- Broad Appeal: Originally designed for younger renters, BTR homes now attract boomers.
Cons:
- Suburban Locations: These communities may feel isolated, though developers like Capstone prioritize walkability.
- Excess Space: Larger homes may not suit all boomers.
- Younger Neighbors: A youthful resident mix may not align with all preferences.
Active Adult Living
Age-restricted communities cater to the 55+ crowd with homes and extensive programming. The average resident age at these communities is 72–75.
Pros:
- Age-Appropriate Design: Communities like Everleigh Cape Cod near Hyannis, Mass., offer accessible lounges, yoga studios, and libraries, supporting aging in place.
- Engaging Programming: Pickleball, walking trails, and health-focused events, like those at Vita Luxury Apartments on Grant in Merrillville, Ind., promote purposeful aging.
Cons
- Remote Locations: Often in “smile states,” these communities may be far from family.
- Limited Age Diversity: Some boomers prefer more mixed-age environments.
- No Health Care: Unlike continuing care retirement communities, these lack advanced care, requiring future planning, Berg notes.
Summary
Many baby boomers view renting as a short- to medium-term lifestyle choice rather than a forever plan. In fact, few stay renters for more than five to seven years. Some may ultimately return to homeownership after reassessing their needs.
As baby boomers redefine retirement living, the real estate industry must adapt. Renting provides flexibility, financial control, and lifestyle perks that many in this generation are eager to embrace. For boomers, it’s not about giving up homeownership — it’s about gaining freedom.
Are you thinking about buying or selling real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
