Why Are So Many Retirees Opting To Rent Instead Of Owning A Home? (& What It Might Mean)

Once upon a time, people used to hold parties to celebrate paying off their mortgages. The main event? Mortgage burning. Nowadays, many of the people who would have been sending out invitations to the party in the past — retirees — are skipping the mortgage and embracing the practically nomadic decision to rent. And nomadic isn't so far from what's happening here, as many of the retirees who've chosen renting over homeownership have cited ease of movement to be among their top reasons for their decision.

Many who like renting because it gives them the option to live elsewhere are picking up house and moving to warmer climes. Destinations like Florida, Texas, and Louisiana have been popular picks for many of these snowbirds. In Baton Rouge, for example, the number of retirement-aged people who've rented homes there in the last 10 years has jumped by nearly 90%, according to Newsweek. Overall statistics show that the number of renters aged 65 and older increased by about 30%, per Point2Homes.com.

For other retirees who are planning a move, it's all about being with family. Renting their homes means that they can live near their grown children. Or at least, they have the option to move if their grown children decide to relocate somewhere for job opportunities and the like. Regardless of the individual reasons, this shift means that attitudes toward renting have changed, and we'll likely see more built-to-rent housing in the future. 

There's more to these outwardly mobile seniors than just 79-degree temperatures all day, every day (though that's a big part of it). Renting a home doesn't come with the same responsibilities that homeownership does. And more importantly, the stigma associated with renting is gone. It used to be that people who rented were seen as lacking independence and financial stability. People have figured out that the golden years can be a time for fun, freedom, and simplicity. Renters are letting the landlord take care of home insurance, the lawn, and costly and frustrating home repairs, while they travel more, enjoy more, and work less. 

On a related note, some retirees choose to rent because they can't afford homeownership on a limited income, like Social Security. Renting an apartment comes with fewer financial surprises. This makes it easier for these seniors to navigate their limited budgets. 

The switch from buying to renting is likely to have a big impact on the housing markets. In light of this trend, many of the future multi-family residences may be build-to-rent. They're maintained by teams of property managers instead of individual owners. These properties boast more living space and amenities (like social spaces and on-site gyms) as well as some of the trappings that people buy houses for: garages, big backyards, and extra bedrooms. In fact, many of them are so chi chi that even people from younger generations, like Millennials and Gen Zers, find them attractive. This is thanks in large part to the appeal of shared amenities, including workspaces, that fit in with the lifestyles of non-retirees, too.