Baby Boomers have become one of the major drivers of rental demand over the past decade, according to a study by Harvard University’s Joint Center for Housing Studies. Other research finds that Boomers accounted for twice the growth in renter households as millennials did since the recession — and their ranks will only grow as more Boomers reach retirement age.
But is renting in retirement a smart financial decision? Experts say Boomers are weighing a different set of factors from their millennial counterparts. Many Boomers already own a home and may be looking to downsize in favor of less maintenance — and perhaps a warmer climate. While homeownership is a way for Millennials to grow their wealth, Boomers should already have built their assets. Instead, they should focus on making sure their money stretches through their golden years.
We talked to two financial planners — Eleanor Blayney, consumer advocate at the Certified Financial Planner Board of Standards, and Jeff Bucher, president of Citizen Advisory Group in Ohio — and came up with three critical questions Boomers should ask themselves as they weigh whether to rent or buy.