Seniors are increasingly gravitating toward urban, amenity-rich multifamily housing—and in many cases relocating to entirely new markets—signaling a shift away from traditional retirement patterns, according to a new analysis from Chandan Economics.
The report evaluated different types of senior housing markets. One group represented legacy senior hubs with a high share of seniors but less senior in-migration. This group included New Haven, New York, Los Angeles, Boston and San Francisco.
A second group was established for senior destinations with high levels of in-migration, suggesting that seniors there are not just aging in place but moving in. Notable examples were Las Vegas, North Port-Sarasota, Worcester, MA, Toledo and Chattanooga.
The third group comprised emerging senior destinations with low senior populations but high shares of seniors moving in included Boise, Greenville, SC, Knoxville, Charleston and Orlando.
Chandan's report finds that, compared to all renters, senior renters prefer to live in multifamily housing and in urban areas with many amenities and more than half (54%) do so. Of this group, 28.1% prefer small multifamily properties and 26.3% prefer larger ones with 50 or more units. By comparison, among renters as a whole, only 17% choose to live in larger buildings.
The reverse is true for single-family rentals. Only 26% of seniors choose these, compared to 31% of all renters.
Life-stage dynamics and location preferences may account for seniors' preference for multifamily housing, the report suggests. Seniors often need less space than younger households and downsizing is common when children leave home. Urbanized settings offer greater proximity to amenities, services, healthcare and transit.
The omission from the report included all but two cities in Florida – the state with the second highest number of senior citizens in the nation after California and one of the highest shares of older Americans compared to the overall population. In Florida, 80% of seniors own their homes.
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