More baby boomers—those born between 1946 and 1964—are breaking from tradition. While homeownership was once considered the ultimate retirement goal, a growing number of retirees are now choosing to rent. In fact, over 30% of boomers aged 65 and older are renters, according to the latest U.S. Census data. From 2009 to 2019 alone, boomer rental households surged by 32%, outpacing all other age groups.
So what’s behind this trend—and should you (or your clients) consider renting in retirement?
Why Boomers Are Choosing to Rent in 2025
1. Flexibility Without Commitment
Renting allows retirees to relocate near family, downsize easily, or explore new cities without the long-term commitment of ownership. Many prefer short-term leases (12–24 months) that give them the freedom to move as needed.
2. Relief from Maintenance Responsibilities
Tasks like yard work, roofing, and plumbing become increasingly taxing with age. Renting shifts these burdens to property managers, providing peace of mind and convenience.
3. Access to Liquid Capital
Selling a mortgage-free home unlocks equity that can fund retirement, travel, or new investments. For example, selling a $400,000 home could provide up to $390,000 in usable capital after closing costs.
4. Predictable Monthly Expenses
While rents can increase slightly, they often remain more predictable than unexpected costs homeowners face—such as property taxes, HOA fees, and emergency repairs.
Rent vs. Own: A Financial Comparison
Let’s examine what this shift looks like in numbers. For a retired couple in a mid-sized U.S. city:
Expense Type |
Homeownership |
Renting |
| Mortgage | $0 (paid off) | $1,800/month |
| Property Taxes | $500/month | $0 |
| Home Insurance | $100/month | $20/month |
| Maintenance | $250/month | $0 |
| HOA Fees | $150/month | $0 |
| Total Monthly Cost | $1,000 | $1,820 |
Opportunities for Real Estate Professionals & Investors
For Investors:
- Focus on low-maintenance, ADA-compliant properties.
- Target downsizing markets like Florida, Arizona, and North Carolina.
- Offer lease flexibility to attract older renters.
For Real Estate Agents:
- Help boomers sell and transition into rentals.
- Offer full-service downsizing support.
- Market listings to younger buyers taking over boomer homes.
For First-Time Buyers:
- Boomers are freeing up well-maintained homes in desirable areas—great news for buyers seeking move-in-ready properties.
Tips for Boomers Considering Renting
- Evaluate your market: Some cities are more rental-friendly than others.
- Compare all costs: Factor in insurance, utilities, and HOA fees.
- Negotiate your lease: Ask for multi-year leases or rent caps.
- Understand your rights: Senior renters often enjoy extra protections.
- Downsize smart: Look for walkable areas with access to healthcare and public transit.
FAQ: Renting in Retirement
Why are more boomers renting instead of owning?
Flexibility, freedom from maintenance, access to home equity, and easier budgeting are driving factors.
Is renting financially smarter for retirees?
It depends. Renting can be cost-effective when paired with smart investing of home sale proceeds and reduced overhead costs.
How should retirees compare rent vs. own costs?
Use a Rent vs. Buy calculator and include all factors: taxes, insurance, maintenance, and opportunity cost of home equity.
Final Thoughts
In today’s changing housing landscape, renting is emerging as a viable—and even preferable—option for many retirees. It offers financial flexibility, reduced stress, and the freedom to live life on your terms.
Whether you’re planning your own retirement, advising a loved one, or navigating the real estate market as a professional, understanding this trend will help you make more informed decisions.