Aging comes with the long-believed assumption that older people must settle down- and by settling down I mean, owning a home. But who is to say that seniors must follow the trend? As the younger end of the baby boomer cohort reaches the age of 55, the older generation is breaking the rules when it comes to what is expected of their age group.

With more than 22% of the current U.S. population being aged 60 and over, the national median age has increased by almost two years, from 36.7 to 38.1, between 2007 to 2017. This means that not only has the older age group enlarged but that it is also living longer. And more of them are choosing to live their extra years in a rental.

According to a study from RENTCafe.com, in the decade following 2007, the renter households aged 60 and older saw an increase of 43%, or roughly 2.8 million people. Compared to the younger age groups which also saw an increase in their renter population, the senior renter households made a significant impact on the rental market. That isn’t to say that the 60+ generation doesn’t own homes anymore. There has also been a 31% increase in the number of older owner households. But renting seems to be trending more than buying in the last years, especially for the growing elder age group which is making its presence known in the real estate market.

So where does the older generation go?

According to our study, most retirement cities are spread across Arizona, California, and Florida. However, cities in Texas and Arizona have seen the biggest change in the number of 60+ renters in the 10-year time frame mentioned. Austin and Forth Worth have seen increases of 113% and 95% respectively, and Phoenix, of 112%.

It’s undeniable that what all these places have in common and is attracting the older age group are the warm weather and the access to facilities that can accommodate their needs, both physically and socially.  Seniors are no longer attracted to homeownership. The idea of living alone in a large house, with high maintenance costs, and often not in the best locations given their new age-related needs, has made many seniors move into rentals.

Access to shopping centers, age appropriate outdoor activities, easy transportation, and a warm climate, are all factors that are driving the senior population to locations that are perfect for their needs. Furthermore, being in a city where there is a higher number of older households, allows for part-taking in a community where personal and social goals can be met more easily. And for all this, a rental is more than enough.

In the future, the 60+ renter household share is expected to reach 31% by 2035, making it the second highest share among all age groups. In fact, the 18.6M senior renter households expected in 2035, will surpass those aged 34 and under, and close the gap with those aged 35 to 59.

With this change drastically affecting the real estate market, it is important that developers adjust their plans in order to accommodate the needs, on all levels, of older renters.

About the Author:

Florentina is a creative writer for RENTCafé, where she covers everything from real estate news to market reports. She holds a BA in English and Spanish, as well as an MA in Multilingual and Multicultural Communication.