America’s Fastest Growing Renter Demographic: 55+ Retirees and Empty-Nesters

Millennials and now Gen Z have been the target audience for many rental communities over the last few years. Even for mom-and-pop landlords, making a single-family home or small multifamily unit resemble a well-equipped Airbnb to attract high-earning, younger tenants has been a popular strategy. 

Recent data suggests, however, that this approach may be overlooking an ever-growing section of the rental community: the 55-plus age group.

A Generational Shift in Housing

Unlike younger tenants, many of whom are digital nomads flitting between cities or young couples saving to buy their own home, older tenants are often former homeowners who are tired of the rigors of property ownership—such as increasing taxes, maintenance, not being able to leave for weeks at a time—and looking for something stable and long-term. In other words, ideal tenants.

According to research from the National Investment Center for Senior Housing & Care, based on U.S. Census Bureau data and detailed in The Wall Street Journal, the fastest-growing age group of renters in the U.S. is the 55-and-older age group. 

And a report from Point2Homes based on U.S. Census data reveals that 2.4 million more Americans aged 65+ were renting in 2023 than in 2013—an almost 30% increase, the largest of any demographic. The 55-64 segment also experienced growth, although not as pronounced. It’s a trend that is shaping the national rental landscape.

Why the Number of Older Renters Is on the Rise

According to The Journal, several converging reasons are fueling the middle-aged rental boom.

Lifestyle flexibility

Owning a single-family home is no longer practical for divorcees and empty nesters. Renting allows for the ability to move to warmer weather, be near grandchildren, and reduce taxes and other expenses.

Avoid property maintenance

The hassle of property maintenance is one of the most compelling reasons to ditch a single-family home, especially an older one. The convenience of calling a landlord to fix any issues can be highly appealing.

Financial flexibility

Selling a long-term home releases capital, offering liquidity and with it, the opportunity to travel, pay for healthcare, invest, or engage in other leisure activities. 

Community and amenities

Large-scale developers have become increasingly cognizant of the growing 55+ rental age group and, as such, have been offering “active adult” rental communities, with gyms, gardens, and social spaces. Connection and engagement are a big draw for older tenants, especially those who have dedicated their lives to raising families or are single.

Regional Differences: Where the Older Rental Demographic Is Growing Fastest

Although the growing 55+ rental trend is national, some areas are experiencing sharper increases than others. For example:

• San Francisco Bay Area: In 2023, renters aged 65+ made up over 13% of renters, compared with around 10% a decade earlier.
• Pittsburgh: The share of renters 65+ has climbed from 16% to 18% in a decade.
• Twin Cities: More than 15% of renters are aged 55+, sparking a boom in “active adult” communities in Minneapolis and St. Paul. 
• Portland, Oregon: Scenic Portland has seen its proportion of 65+ renters increase from 9.6% to over 12% in a decade.
• Texas metros: Perhaps no other city has experienced the explosive growth that Austin has, with an 81% increase in senior renters between 2013-2023. Dallas-Fort Worth was up 66.5%, and Houston was up 60%.

Strategies to Rent to Older Tenants

To attract and retain older tenants, understanding their needs is crucial. These are helpful things for landlords to keep in mind, whether you own an apartment complex or a single-family home.

Stability and security

Nothing will deter a renter on a fixed income or nearing retirement more than unpredictable rent hikes. Mom-and-pop landlords not beholden to corporate rent increases governed by rental software programs such as RealPage and Yardi Systems stand to benefit in this scenario.

According to U.S. Census data, nearly half of renter-households are cost-burdened—spending over 30% of income on housing. When your income is limited, stability is essential.

Offering long leases of 12 months or more with the guarantee of predictable, prearranged increases will put an older tenant’s mind at ease. Those in this demographic do not have the energy or inclination to keep moving or be financially stressed. Transparency triumphs over short-term profitability.

Be fair and pragmatic in your screening

If your tenant has retired, your screening process will differ compared to that of younger, full-time employees. Ask older applicants for information about their pensions, Social Security, or retirement savings. 

However, asking for co-signers for independent older singles can be humiliating and may even deter good tenants. That said, bad tenants come in all ages, and it’s essential to conduct due diligence with credit reports and income verification, just as you would with any tenant.

Accessibility matters

Making your rental elderly-friendly doesn’t mean turning it into a medical facility. However, simple additions such as bathroom grab bars, low/no-step entrances, well-lit public areas, robust security, and regular snow shoveling or underground heating pads are thoughtful touches that offer peace of mind.

Responsive maintenance

No tenant, particularly an older one, wants to move into a rental to feel like they are living in a dorm room, or that they have to worry about things getting fixed continually. Be punctual with any maintenance issues. A big part of the appeal for older tenants to move into a rental is not having to worry about maintenance.

Price for the long term

Renting to older tenants doesn’t necessarily mean lowering your rents dramatically; instead, it means offering long-term rentals that provide value. Rather than renting at the top of the market, pricing just below, with the agreement of predictable rent increases, will save a landlord money in the long term by stopping tenant turnover.

Adjust leases to accommodate Social Security or pension checks

Often, Social Security checks or pensions are not always paid on the first of the month. Offer some leeway in your leases to accommodate this.

Allow for tech challenges

Not all older tenants are tech-savvy. Allow for tenants who prefer traditional forms of communication and rent payments, as opposed to those who conduct transactions via their smartphones.

Consider pets

Many older tenants live alone, and the company of a pet helps them both emotionally and physically. Be cognizant of this when crafting your lease, and you’re likely to have a larger pool of prospective older renters.

Final Thoughts

Landlording is a service business, and with older tenants, property owners and management companies need to offer more than a place to live. Stability, security, thoughtful design, prompt maintenance, and clear, respectful communication are essential for any well-run rental property, but when renting to an older demographic, it could mean the difference between keeping a long-term tenant and losing them to the competition.

Older tenants are likely to spend more time at home than younger ones, especially in colder climates. Ensuring your home is draft-free and your HVAC systems are in impeccable order is paramount. Stay on top of these things, and you’re likely to have a tenant who will be happy to call your apartment home for years to come.