September 27, 2026
For generations, owning a home outright was often treated as one of the clearest signs of financial security in retirement. But for a growing number of older Americans, the calculation is changing.
A recent Barron’s article reported that the number of renters aged 65 and older increased 30% between 2013 and 2023. Some retirees are being pushed toward renting by elevated mortgage rates and housing costs. Others are making the decision intentionally, selling appreciated homes, releasing equity, and choosing flexibility over continued ownership.
For Michael Landsberg of Landsberg Bennett Private Wealth Management, that trend is especially visible in Florida, where rising property taxes, insurance premiums, HOA fees, and condo-related expenses have changed the economics of owning a home.
The retirement housing question is therefore becoming less about whether owning is inherently better than renting and more about what role housing should play in the broader retirement plan.
One of the common assumptions about retirement is that a paid-off home substantially reduces housing expenses.
In practice, ownership costs continue well after the mortgage disappears.
Property taxes, homeowners insurance, flood insurance, HOA assessments, condo fees, maintenance, repairs, and periodic renovations can represent a significant annual expense. In parts of Florida, several of those costs have also become less predictable.
Michael noted that strong home-price appreciation across much of the state has contributed to higher property-tax costs, while insurance and association-related expenses have become increasingly significant.
Luxury coastal properties and larger condominiums can be particularly exposed because insurance, flood risk, association expenses, and building-related assessments can all affect the annual cost of ownership.
That means a retiree with no mortgage can still face a substantial and variable housing obligation.
For retirees who have owned property for decades, the home may represent one of their primary assets.
That creates an important planning question:
Does that capital continue to serve the retirement plan by remaining in the house, or could some of it serve a greater purpose elsewhere?
Selling can turn an illiquid asset into capital that may be invested, held for future healthcare needs, used to supplement retirement income, or reserved for other goals.
This does not automatically make renting financially preferable. Homeowners give up potential future appreciation when they sell, and rent itself can increase over time.
But the comparison becomes broader than a monthly mortgage payment versus monthly rent.
The relevant calculation may include the value of the home, expected investment returns, taxes, insurance, maintenance, transaction costs, future rent increases, and the retiree’s expected length of stay.
Barron’s article cited Redfin data showing that a typical mortgage payment was approximately 37% higher than typical rent nationally.
For a retiree deciding whether to purchase another home after selling an existing property, that difference can influence both cash flow and the amount of capital available for investment.
Buying a replacement property may require hundreds of thousands of dollars to be committed immediately.
Renting keeps that capital liquid.
The question is then whether the financial value of retaining that liquidity outweighs the benefits of ownership.
For some households, the answer may favor buying.
For others, especially those who expect another move, want easier access to their capital, or face substantial property-related costs, renting can become a practical part of retirement planning rather than simply a temporary housing choice.
The financial side is only part of the equation.
A house can provide stability, control, familiarity, and a sense of permanence. Those benefits can become particularly valuable later in life.
But ownership also creates responsibilities.
Maintenance needs do not disappear when someone retires. Neither do hurricane preparation, repairs, insurance renewals, property management, landscaping, association issues, or unexpected expenses.
Some retirees increasingly prefer the ability to travel, spend extended periods near children or grandchildren, or relocate if healthcare needs change.
Renting can make those transitions easier because the household is not required to sell a property each time its priorities change.
That helps explain why renting among older Americans is not necessarily a short-term phenomenon. Barron’s cited Redfin research showing that roughly one-third of baby-boomer renters had remained in the same rental for more than a decade.
Retirement can last decades, and housing needs at 65 may look very different from housing needs at 80 or 90.
A large home may initially accommodate visiting family and an active lifestyle. Later, stairs, maintenance, distance from healthcare, or mobility limitations may become more important.
That creates another consideration when deciding whether to purchase property during retirement.
Buying generally makes greater financial sense when the owner expects to remain in the property long enough to justify transaction costs and ongoing ownership expenses.
If another move is reasonably foreseeable, renting may preserve flexibility until long-term housing needs become clearer.
Housing decisions can therefore be viewed as part of retirement-stage planning rather than as a one-time decision made at retirement.
Housing should not be evaluated separately from the rest of a retiree’s finances.
A retiree with a large percentage of net worth tied to one property may have significant real-estate exposure while holding comparatively limited liquid assets.
Selling and renting can change that balance.
It can increase investable assets, improve liquidity, and provide a reserve for healthcare, travel, family support, or unexpected expenses.
On the other hand, owning a home can reduce exposure to future rent increases and provide an asset that may continue appreciating.
Neither structure is inherently preferable. The appropriate choice depends on how housing interacts with income needs, investment assets, taxes, estate planning, longevity, and lifestyle preferences.
We believe the traditional rent-versus-buy debate is too narrow for retirees.
The more useful question is:
What housing arrangement gives the retirement plan the right combination of cash flow, liquidity, flexibility, and stability?
For some retirees, remaining in a paid-off home may continue to make sense. For others, rising taxes, insurance costs, maintenance obligations, and significant home equity may make selling and renting worth considering.
Florida makes that calculation particularly relevant because housing expenses can extend well beyond the purchase price or mortgage payment.
The decision should therefore account for the full cost of ownership, the value of released equity, future housing needs, expected length of stay, and how much liquidity the retiree wants available elsewhere in the financial plan.
A home can still be an important retirement asset. But it does not necessarily have to remain the place where retirement capital stays locked.
Source: Rent or Buy? What Seniors Are Doing—and Why. (subscription required)
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