The U.S. multifamily market is experiencing a significant demographic shift, with senior renters emerging as a key driver of leasing demand. Between 2013 and 2023, the number of renters aged 65 and older grew by 2.4 million—an increase of 30%—reflecting a pronounced shift in housing preferences among aging Americans.
A recent analysis by Point2Homes across the 75 largest U.S. metro areas points to several motivating factors behind this trend, including downsizing, elevated mortgage rates, and the desire to relocate closer to family. The cohort aged 55 to 64 also saw a notable uptick in rental activity, increasing by nearly 500,000 renters. This age group is often influenced by life transitions such as becoming empty nesters, experiencing divorce, or pursuing late-career flexibility.
From an investment standpoint, this shift underscores a growing demand for rental product that appeals to older adults—particularly offerings that deliver convenience, community, and optionality without the financial burden of ownership. Many seniors are leveraging home equity or retirement savings to transition from homeownership into rental living, prioritizing flexibility and liquidity. Additionally, working seniors favor rentals that enable seasonal relocations or facilitate career mobility in retirement.
Geographically, the Sun Belt has become a key beneficiary of this demographic movement. More than 80% of the senior rental growth occurred in warmer, lifestyle-oriented markets such as Baton Rouge, Jacksonville, North Port-Sarasota-Bradenton, and Cape Coral-Fort Myers. In some of these markets, seniors comprise over 20% of the total renter population, reinforcing the region’s position as a top destination for active aging communities and lifestyle-oriented multifamily development.
“This southward migration reflects more than just a preference for sunny climates,” the report notes. “It includes a growing wave of downsizing retirees and ‘baby chasers’—grandparents relocating to be closer to grandchildren, seeking intergenerational support and lifestyle flexibility.”
Interestingly, seniors are not limiting themselves to apartments. Single-family rental demand is also climbing among this group, with renters aged 65+ occupying houses at rates 25% higher than in 2013. In markets such as Omaha-Council Bluffs, Dallas, and Austin, senior household renters have more than doubled. While affordability and community amenities draw retirees to places like Omaha, escalating property taxes and home prices in Texas metros are prompting some older homeowners to opt for rental alternatives.
Meanwhile, rental activity among younger demographics is softening. The number of renters under age 24 has declined by approximately 9% over the past decade. Factors contributing to this trend include prolonged student housing tenure, multigenerational living, and delayed household formation, often due to affordability constraints and broader economic uncertainty.
For developers, investors, and operators, these trends highlight a growing need to reimagine rental offerings—not only for younger generations but increasingly for older adults seeking quality housing solutions that meet their evolving lifestyle and financial needs. The senior renter is becoming an essential customer profile in the multifamily and single-family rental sectors alike.
Credit: GlobeSt.com
