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More baby boomers are selling their homes and renting

Home equity is being redirected into other assets

Updated:

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Photo by Johnson Johnson on Unsplash

Key Insights

  • Many baby boomers are choosing to rent rather than own homes to gain flexibility, reduce maintenance burdens, and access desirable amenities.
  • Rental options appeal due to affordability, the freedom to travel, and proximity to family, with build-to-rent and active adult communities among the top choices.
  • Real estate professionals are encouraged to understand boomers’ unique preferences, including a desire for larger living spaces and different amenities than younger generations.

It’s been said that baby boomers are redefining retirement, and one sign of that shows up in housing data. With thousands of dollars in home equity, a growing number of baby boomers are selling their homes and choosing to rent rather than own.

This generational shift, confirmed by housing experts and data from Freddie Mac, marks a departure from the traditional pattern of homeownership in retirement.

Boomers — the roughly 76 million Americans born between 1946 and 1964 — appear to be reevaluating the role of homeownership in their later years. Many no longer see reinvesting their home equity into another property as the best option. Instead, they’re embracing the convenience and flexibility of renting and putting the cash to work in other assets.

According to Freddie Mac, key motivations include predictable monthly expenses, no property tax burdens, on-demand services such as concierge and maintenance, and the ability to relocate with ease. 

Not downsizing, but rightsizing

Contrary to the downsizing trend of previous generations, many boomers are opting for rental homes that offer as much or even more space than their former homes. Their desire to accommodate family, entertain guests, and keep personal belongings has led to a rising demand for spacious rental options with thoughtful amenities.

Research shows three primary rental models are emerging as popular rental choices among boomers:

  1. Amenity-Rich Apartments: Modern apartment complexes appeal to boomers looking for walkable locations, single-level layouts, and a full slate of amenities like fitness studios, dog parks, and concierge services. Projects like RMK Management Corp.’s Central Station in Evanston, Illinois, are near transit and healthcare, offering high-end finishes and community events.
  2. Build-to-Rent (BTR) Homes: These detached rental homes resemble traditional single-family residences, offering multiple bedrooms and private yards without the obligations of ownership. Once popular with millennials, they’re now attracting boomers looking for space and community.
  3. Active Adult Communities: Age-restricted 55+ communities like Everleigh Cape Cod or Vita Luxury Apartments on Grant offer extensive programming, age-friendly designs, and a sense of purpose through group activities and events. These communities support aging in place but don’t provide advanced medical care.

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