Senior Spotlight: Baby Boomers Prefer… Renting?!

Home ownership is often seen as a generational goal, a rite of passage achieved at some point after one builds a career and before they retire – but it is not the plan for everyone. While we often read media headlines about Baby Boomers staying in their homes, choosing not to sell and delaying a large release of inventory, we rarely hear about retirees who are renting by choice – and like it that way! 

Last month, Market Watch released an article highlighting data from Bank of America. The data revealed that of those in their late 60s to early 70s, 84% of those individuals prefer to rent in today’ s environment – up from 63% a year ago. Boomers who already own homes may not be going anywhere, but Boomers who rent report enjoying and keeping the freedom that comes with it. Over 80% of Boomers who rent said “they valued the sense of freedom to move when and where they want to.” Additionally, 90% of renting Boomers say they like not having the responsibility of property maintenance and repair work. 

The largest factor in choosing to remain renting is not so much a choice as a financial constraint. 87% of Boomers who rent want to avoid the financial stress and responsibilities of home ownership. Mortgage rates have more than doubled since 2020, with Mortgage News Daily reporting an average 30-year rate of 3.19% then compared to 7.11% at the time the article was written a few weeks ago. Coupled with the fact that home prices have hit an all-time high (Redfin), older adults who currently rent do not feel motivated to change that status anytime soon. 

The challenge of having a dedicated segment of older adult renters is the available stock of age-friendly housing. Harvard University’s Joint Center for Housing Studies defines accessible housing as that which has single-floor living, no-step entries and wide hallways and doors. Yet less than 4% of homes and apartments offer these features – and even fewer of these are rentals!

A new type of sandwich generation dilemma is those who are stuck between not needing (or wanting) the features of a senior living community, but who want to rent a residence that meets their needs today and can support them if their health changes tomorrow. 

When we think of renters, we may not think of older adults, but data shows that we need to. Whether you are renting out a property or considering your own rent vs. own status in the future, we hope that the considerations of a fair market rate, accessibility and comfort align for you in the best ways possible. 

Cheers,

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com

NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/