Most people picture the renting population as a bunch of young millennials who aren’t ready to settle down yet. But, that’s not true. Renters make up a large variety of ages. One of the fastest growing group of renters today are baby boomers. According to a study by the Joint Center for Housing Studies at Harvard University, while households in their 20s make up the single largest share, households aged 40 and over now account for a majority of all renters.
So, why are baby boomers (born 1946-1964) choosing to rent? What makes renting so appealing to this generation that is currently in or near retirement? Here are a few reasons:
It’s Time To Downsize: The kids have grown up and there’s a lot of empty space in that big ole’ house. There’s no need to have a two- or three-story home that takes a lot of maintenance and upkeep. Downgrading to a smaller apartment will be easier to maintain and less hassle. Many baby boomers choose to rent a small apartment so they can focus on the important things in life, instead of the constant upkeep of a large house with a big yard.
Desire For Flexibility: Many baby boomers want the opportunity to travel and not be tied down to one place. For those with children in different states, it might be a great opportunity to rent a place near one child for a year or two and then rent a place by another child for a year or two. Or they might want to try someplace new without the hassle of being tied down to a mortgage. Once again, renting gives baby boomers the flexibility to focus on what matters most.
It’s A Better Investment: Baby boomers who sell their house and use the money gained from the sale to invest into retirement accounts are making a smarter financial investment than if they stayed in their house. The more money you can put in your retirement accounts, the more interest you’ll accrue. Also, baby boomers decide to rent are no longer paying property taxes, yard and house maintenance, or a mortgage So, renting is a smart financial decision for many baby boomers.
Let’s Socialize: Many baby boomers are selling their homes and moving to large apartment buildings to improve their social lives. More and more property managers are offering social gatherings and enticing amenities for baby boomers because that’s what they want. Baby boomers also like to be within walking distance of restaurants, plays, movies, and musical events. Renting offers baby boomers a chance to socialize and enjoy life.
Luxurious Living: Many baby boomers are watching their children or grandchildren (the millennial generation) choose to live in luxurious apartments in the city rather than buy a small house in the country. The right apartment offers socialization, flexibility, and luxurious living. So, many baby boomers are opting to sell their homes in the country and rent a luxury apartment within walking distance of restaurants, stores, and entertainment. Baby boomers are renting so they can live the life they want to live.
Many baby boomers are changing the American Dream. They’ve sold their house in the suburbs with a picket fence and are now renting luxurious apartments in the city. They’re enjoying a life free from property taxes, mortgages, shoveling, and lawn mowing. And now baby boomers can continue to build their credit score by paying rent on time each month via RentPlus. Renting offers baby boomers a chance to live financially free in a relaxing, luxurious apartment