According to a recent study by Point2Homes, the number of renters aged 65 and older in the Las Vegas Valley surged by an astounding 33.7 percent from 2013 to 2023. This dramatic increase stands in stark contrast to virtually all other age groups, which experienced a decline during the same period.
The study highlights that the most notable drop in renters was found in the 18-24 age group, which saw an 8.4 percent decrease. Other age brackets also faced declines, including those aged 35-45 and 45-54, experiencing decreases of 5.1 percent and 4.8 percent, respectively. Even the 55-64 age group saw a modest drop of 0.8 percent.
Interestingly, the only demographic besides seniors that experienced an increase in renting was the 25-34 age category, which rose by 4 percent.
On a national scale, the growth rate for senior renters over the same decade was approximately 29.4 percent, translating to about 2.4 million more individuals aged 65 and older now renting their homes. Alexandra Ciuntu, the author of the Point2Homes study, attributes the more significant rise in the Las Vegas Valley to various appealing local attributes.
“It highlights how Vegas is one of the most appealing and well-positioned areas to attract older adults with its warm climate, abundant senior communities, reasonably accessible health care, and amenities that support a lower-maintenance lifestyle,” Ciuntu stated.
As the study suggests, Las Vegas is not merely a retirement destination; it has become a vibrant locale that allows seniors to thrive. Furthermore, there has been a notable 31 percent increase in seniors opting to rent single-family homes over the past decade, aligning Las Vegas with major metropolitan areas like Los Angeles and Denver.
The aging population is a significant factor behind the rise in senior renters; however, several other dynamics are influencing this trend. Many seniors are choosing to relinquish the responsibilities tied to home ownership, such as property taxes and maintenance work, instead utilizing their home equity or retirement savings to facilitate alternative living arrangements.
Moreover, some seniors are relocating to be closer to family or downsizing for cost-effectiveness. Renting provides flexibility, which has become increasingly important for older adults who are remaining in the workforce longer, allowing for job-related relocations, seasonal living arrangements, or part-time moves.
The study also notes that nationally, the only demographic segments to see increases in rentals are those aged 55 to more than 65. A recent Harris Poll indicated that older adults now have a lower threshold for interest rates when it comes to purchasing homes.
As Freddie Mac reports, the average rate for a 30-year fixed mortgage stands at 6.7 percent and has not dipped below 6 percent since September 2022.
The motivations for senior renters are multifaceted. They include downsizing from larger family homes, avoiding the costs and upkeep associated with home ownership, and prioritizing proximity to family or essential medical services.
As life expectancy in the U.S. continues to rise, an increasing number of Americans are opting for non-homeowner lifestyles in their later years, leading many to redefine their priorities and consider long-term renting. This shift signifies a departure from the traditional retirement narrative, as many seniors increasingly embrace the mobility and convenience that renting offers.
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