- Tom and Jeanne sold their Utah home to rent in Mesa, Arizona, aiming to travel more.
- Increasingly, older adults rent for financial flexibility and additional amenities.
- The number of renters aged 65 and above rose by 30% from 2013 to 2023.
Tom and Jeanne Skellan enjoyed owning their home for over 40 years, but as they approached their 70s, they decided to make a significant life change and return to renting.
The couple moved from St. George, Utah, where they had settled after many years in Philadelphia, to be nearer to one of their sons and his family in Mesa, Arizona. Their move took place in 2021, after they sold their home of 15 years.
Even though they had sufficient funds from their house sale for a new purchase, Tom and Jeanne preferred to avoid the maintenance and responsibilities that come with owning a home. Instead, they signed a lease on a comfortable three-bedroom rental.
This trend of renting is becoming the norm among retirees. Many older Americans are choosing to rent for reasons tied to financial security, flexibility, and community living options.
The Skellans currently pay $2,100 a month in rent, which is slightly higher than their previous mortgage. However, they appreciate not having to deal with yard work, air conditioning repairs, or rising costs from property taxes and homeowners insurance. They also have the freedom to relocate if family circumstances change.
Tom pointed out, “If we bought another house, we could only afford an older one, which would come with lots of potential expenses.” With his 75th birthday approaching, he considers the mortgage terms, stating plainly, “I won’t live another 30 years to hope for equity increases.” Instead, they find value in enjoying their retirement today.
The couple is utilizing some saved costs typically allocated for a down payment on travel opportunities. This summer, they explored Ireland, Saratoga Springs, and the Ozarks. They also plan a big trip to Italy next year to celebrate their 50th wedding anniversary.
A Rise in Older Renters
The demographic of Americans aged 65 and older opting to rent has dramatically increased by nearly 30%—around 10.4 million from 2013 to 2023—revealing insights from a recent Point2Homes study of U.S. Census data. The growth among this age demographic stands out, particularly in sunny regions like Arizona.
This uptick reflects the difficulties many seniors face when downsizing from long-term homes. High mortgage rates and soaring property prices make finding affordable, suitable homes increasingly challenging. A recent Bank of America survey revealed that 80% of baby boomer renters believe renting to be a more reasonable financial decision than buying.
Rental communities, especially those catering to seniors, are thriving in today’s housing market, according to Tim Mullaney of Senior Housing News.
Unlike some older renters who may struggle financially, the Skellans find themselves in a comfortable position. Jeanne is fully retired, while Tom has transitioned to semi-retirement, running a small business focused on homeowners’ associations. He also receives a pension of about $2,200 per month and roams through Social Security, helping to bring their combined monthly income over $3,300.
However, not all seniors are so fortunate. Approximately one-third of households led by adults 65 and older are considered “cost-burdened,” meaning they allocate over 30% of their income to housing. Notably, older renters, like the Skellans, find themselves at the high end of this spectrum as 58% face significant financial strain due to housing costs.
Despite the challenges faced by many in their age group, the Skellans are optimistic about their living arrangement and are hopeful to remain in their new home for the foreseeable future.
As Tom puts it, “When you’re renting, your main worry is just hoping to stay somewhere for a decent time and not have to move again.”
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