Millennials may be known as the “renter generation,” but they’re apparently not the only group that’s showing increased interest in the rental market.
Instead of putting money down on a smaller house when they’ve outgrown their current living quarters, more Baby Boomers are keeping their options open and examining the benefits of renting.
According to data from ApartmentList.com, the population of Baby Boomer renters increased by 34 percent from 2007 to 2008. The trend was recognized as one of the drivers of a 4.3 million increase in the number of renter households in the U.S. from 2005 to 2015.
But cost is unlikely the main appeal for older home-hunters.
In an analysis of monthly costs by GoBankingRates.com, there is a long list of states in which it’s cheaper to rent a home than purchase one.
Many Boomers are moving in the direction of renting just to “give themselves a break,” according to Amber Noble Garland with Keller Williams Realty West Monmouth.
Renting is just an option for them that alleviates the pressure and allows them to breathe for a little bit. The thought of renting, psychologically, is a reprieve for them.
Renters, for example, have fewer worries about maintenance outside their walls. And, depending on the unit’s size, Boomers may be able to get all the luxury they want in a smaller space and with fewer stairs.
When weighing the perceived benefits of renting, people should think of their financial future, rather than the present.