Housing preferences among the country’s growing senior population appear to be shifting toward renting, as the number of tenants over age 65 increased by 2.4 million, or 30%, between 2013 and 2023.
According to a Point2Homes analysis of this trend in the 75 most populous U.S. metro areas, downsizing, high mortgage costs and relocating closer to family are all factors contributing to the increase in rentership among U.S. seniors. The next youngest group – those aged 55 to 64 – was the only other age group among which renting is gaining popularity. The number of renters in this age cohort increased by nearly half a million, which Point2Homes attributed to becoming empty nesters, divorce and career flexibility.
Seniors are more sensitive to the financial burden of a mortgage and many are using home equity or retirement savings to support alternative living arrangements. Those who are opting to remain in the workforce into their retirement years also favor renting as it allows for job-related moves, seasonal living and part-time relocation, said the report.
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The Sun Belt is attracting many seniors choosing to rent. Warm weather, accessible healthcare and a relaxed lifestyle make the region appealing to senior renters, said the analysis. More than 80% of the growth among renters aged 65+ was in sunny locales, including Baton Rouge, Louisiana and Jacksonville, Florida. Seniors make up 21.3% of renters in North Port-Sarasota-Bradenton and 18.5% in Cape Coral-Fort Myers, Florida, solidifying the state’s status as a destination for senior renters, said the analysis.
“This southward surge is part of a broader migration trend, with older Americans relocating for more than just sunny weather and golf-friendly communities,” said Point2Homes. “Much of this senior renter boom consists of downsizing retirees and so-called ‘baby chasers’ — grandparents moving closer to their grandchildren, enjoying proximity to family, shared expenses, and job opportunities.”
Older renters are not only interested in multifamily properties. House renters over 65 years old surged by 25% as of 2023. The appeal of single-family homes comes from extra space, quieter surroundings and room for visiting family, said Point2Homes. In Omaha-Council Bluffs, Nebraska-Iowa, Dallas and Austin, Texas, house-renting seniors have more than doubled since 2013. Omaha’s affordability and senior-friendly rental options are attractive to retirees, while rising property taxes and home prices in Dallas and Austin may be prompting older homeowners to consider renting.
Meanwhile, young and midlife renters are renting less than their counterparts did a decade ago. Renters under age 24 declined by about 9%, opting instead for student housing, living with family or delaying renting altogether, said the report. The high cost of homeownership is likely driving this decrease in renting among Gen Z and young Millennials, who typically would be at an age when they would be seeking housing stability.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
