This informative article from Business Insider by Liz Knueven tracks a growing trend with retirees. The long article title, 'Some Americans are ditching their mortgage to rent in retirement, and it shows how their lifestyles - and finances - are changing' is pretty much all encompassing. The article digs further into why many retirees are now making the renting vs. owning lifestyle choice.
For whatever reason, we grow up under the assumption that owning a home is the "American Dream." However, there are strong arguments against this goal that most people share. For retirees, or people nearing retirement, renting provides a simpler life and a less stressful existence than home ownership.
Anyone who owns a home can agree that the ongoing upkeep costs, property taxes, and wear and tear over time takes its toll financially. I always say that you really don't own that house of yours. Don't believe me, then stop paying property taxes and you will find out who really holds that note. Sad but true. In addition, natural disasters like fire, hurricanes, and tornados can turn that home ownership dream into a nightmare as well.
Lifestyle changes and choices also play a big part in retirees transitioning from owning a home to renting. Too often, when the kids are off to college or adulthood, that dream house is now way too big. For retirees wanting a more active lifestyle during the second chapter of their life, that home no longer fits their day to day goals.
There's also a mathematical argument that is more financially beneficial to rent than buy. With over 10,000 baby boomers retiring every single day, this "trend to rent" will continue to grow.