Boomer Couple Earn $3,300 in Social Security, Sold Home to Rent

Tom and Jeanne Skellan were homeowners for more than 40 years before they decided to become renters again.

As they both neared their 70s, their kids wanted them to leave St. George, Utah, where they’d moved after decades in Philadelphia, and live closer to family. So in 2021, the Skellans sold their home of 15 years and headed south to Mesa, Arizona, settling minutes away from one of their three sons and his family.

Despite having enough cash from their home sale for a down payment on a new place, the couple decided they didn’t want to sign up again for all the responsibilities that come with homeownership. Instead, they moved into a single-story three-bedroom rental house.

The Skellans’ decision to rent in retirement is increasingly common. A growing number of older Americans rent their homes for financial reasons, flexibility, and, in some cases, amenities and community.

The $2,100 monthly rent the couple pays in Mesa is a few hundred dollars more than their mortgage was in St. George, but they’re relieved they don’t have to do yard work, fix the air conditioning, or worry about rising property taxes and home insurance premiums. And they have the flexibility to move if their son leaves the area or if they want a change.

“If we bought a house, we couldn’t afford a new one, so we’d end up getting an older one, and there might be a decent amount of expenses,” said Tom, who’s turning 75 in late September.

With elevated mortgage rates and soaring home prices, renting is increasingly cheaper than buying. Plus, they might not live long enough to see their home value appreciate much or pay off their mortgage. “I’m not going to last 30 years, so I’m just thinking 12 to 15 years,” he said. “By the time the house gets appreciated, we’ll be dead.”

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Instead, they’re using some of the money they would have spent on a down payment to travel. They spent three weeks in Ireland, Saratoga Springs, and the Ozarks this summer, and they’re planning a big trip to Italy for their 50th anniversary next year.

A surge of older renters

The number of people 65 or older who rent their homes grew by nearly 30% to around 10.4 million between 2013 and 2023, according to a recent Point2Homes study of US Census data. The only other age group with a growing number of renters was people between 55 and 64. Sunbelt destinations, like Arizona, have seen a disproportionate share of the growth with older renters, the report found.

The growth in renters speaks to the challenges of downsizing as a homeowner. With mortgage rates and housing costs high and inventory scarce, many older people are struggling to find affordable and accessible starter homes to buy. Eight in 10 baby boomer renters said renting was a better deal than buying, according to a 2024 Bank of America survey. Many older Americans are turning to rentals, including in 55-plus and retirement communities.

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The rental communities are “a really hot part of the senior housing market right now that’s grown a lot in the last several years,” said Tim Mullaney, editorial director of the trade publication Senior Housing News.

Unlike many older renters, the Skellans feel financially comfortable. Jeanne is fully retired, while Tom is semi-retired and owns a small business doing reserve studies for homeowners’ associations. He also collects a pension of about $2,200 a month from his career as an accountant and IT systems manager for Delaware County, Pennsylvania, for 30 years. The couple both receive Social Security benefits, which amount to more than $3,300 monthly, combined.

While people like the Skellans were able to cash in on a booming housing market and are choosing to rent in part for convenience, many older Americans rent because they don’t have the option to buy.

About a third of 65-and-older households were cost-burdened in 2023, meaning they spent more than 30% of their income on housing, according to a recent report from Harvard’s Joint Center for Housing Studies. And older renters are notably worse off than homeowners — 58% were cost-burdened in 2023, most of them severely, the report found.

The Skellans feel fortunate to have found their home and hope to stay for the foreseeable future.

“The only concern you have when you rent is, hopefully, that you’re going to be there for a while and you’re not going to have to pick up and move again,” Tom said.