Why Boomers are in their rental era
For Boomers, renting in later life has become a surprisingly desirable option. According to the recent Bank of America Homebuyer Insights Report, about 80% of renters in that generation say renting is better than buying a home in the current environment, up from 63% in 2023. But what’s behind this baby boomer rental boom? The report also found nearly all of that cohort appreciate not having to deal with property maintenance and repair work, and prefer to avoid other financial responsibilities and stress associated with homeownership.
This coincides with their desires for a simpler life as they approach or settle into retirement, choosing to prioritise spending their money on personal experiences like travelling. A UK-based Co-op study found that almost a third of over 55s are opting for travel as the most valued way to spend their money.
But beyond living in prime locations and not having to take on the lion's share of maintenance work, renting also opens up space for community among Boomers. According to US Census data, nearly 16 million people aged 65 and older lived solo in 2022. Rental properties with a community focus create a space that embraces socialising among older generations while combating loneliness with co-living models like those designed by the Canadian Senior Cohousing Society to improve their quality of life.
As people increasingly look to build their own worlds, co-living rental spaces are a desirable way to foster local community in an age of global volatility combined with digital acceleration. And we're seeing co-housing spaces manifest across specific interests and genders. New Ground, for example, hosts activities like weekly dinners and yoga classes, highlighting how Boomers are redefining their Third Chapter.
