Senior Spotlight: 12 Million Baby Boomers Are Now Renting

Welcome back to the Bobbi Decker Senior Spotlight! As you know, we are always following the latest trends related to living longer and living better. This week, the newest numbers tell two sides of the rent + own story. It’s no secret that Baby Boomers hold nearly half of the country’s real estate wealth – an estimated $18-$19 trillion according to Realtor.com®. The Scotsman Guide cites Freddie Mac data that indicates Boomers account for 1/5 of the total US population and own more than 1/3 of all US residential homes. 

However, new data from Lending Tree shows that while other generations still dominate the rental market, a shift is taking place. A just-published article reports that 12 million Baby Boomers, 18.6% of the generation, now rent. That amounts to a little more than 1 in 6 Baby Boomers as renters; the concentration of location is also interesting. Nearly 1 in 3 Baby Boomers rent in New York and Los Angeles, with Las Vegas ranking #3. You may also recall that last month, our own Senior Spotlight shared the Newsweek findings that adults aged 55+ are the fastest growing segment of the US rental market. 

The Big Question: Why? There are a multitude of reasons why selling a lifelong home, not aging in place or remaining a renter appeals to older adults.

Key Rental Reasons: Cost and affordability are driving forces for many retiree renters. Those who want to retire in desirable coastal cities or buzzing metros may find renting cheaper than buying in those areas. In addition, many retirees wish to rent to avoid paying costly property taxes – and not have to manage ongoing repairs or make aging in place renovations. Convenience is a secondary driving force. LendingTree Chief Consumer Finance Analyst, Matt Schulz, stated in a press release: “[Baby Boomers] want to be able to call someone if the pipes burst or if the air conditioning goes out. They don’t want to mess with mowing the lawn and pulling weeds. Renting makes a lot of things in life easier.” 

Further Reading

- To see the map of most cities with the highest share of Baby Boomer renters, click here. 

- To read more statistics on owning and renting in retirement, click here.

- To gain insight into the changing mindset shift of renting, click here. 

Cheers to new knowledge, new perspectives and continued health & happiness! 

Bobbi 

Bobbi Decker
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Broker Associate
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www.bobbidecker.com

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