We all know that the Millenial and Gen Z generations are prolonging their leasing years, but did you know more seniors are also choosing to rent? Data from RentCafe shows seniors are renting at rates exceeding younger generations! It showed that in the last 10 years, the number of renters ages 60 plus has increased 43 percent.
While the median age for renters is still younger than their owner counterparts, renters ages 60 and over grew to 9.37 million in 2017, outpacing their younger counterparts. Older owner households grew only 31 percent compared to the 43 percent increase in older renters.
What does this tell us? Well, we do know that this trend is across the board. Older owner households are increasing at a faster pace than younger owners and here’s why. Two words…Baby Boomers. With Baby Boomers now in their 60’s and most of them empty-nesters, they are downsizing. Either they are selling and buying smaller or renting. Homeowners ages 34 and under saw a decrease of 19 percent while owner households between the ages of 35 and 59 only decreased 12 percent.
It’s safe to say that as the older generations are losing their enthusiasm about homeownership, the younger generations are losing their value in the out-of-reach “American Dream” and this has therefore resulted in a surge in rental prices.