Retirees Prioritize Community and Affordability in Post-Pandemic Housing Choices

As retirees navigate life in the post-pandemic economy, the 24th Annual Transamerica Retirement Survey underscores the importance of age-friendly, affordable communities that promote social connections and access to essential services.

While many retirees (62%) choose to remain in the same home where they lived before retiring, 38% decide to relocate, according to the survey of more than 2,400 retirees in the U.S.

“Retirement brings new opportunities in terms of where and how we want to live whether it be moving to a new location or simply staying put,” says Catherine Collinson, CEO and president of Transamerica Institute and Transamerica Center for Retirement Studies. “Plan advisers can help pre-retirees and retirees envision their housing plans as part of their overall financial strategy for retirement.”

Retirees who move often prioritize affordability, proximity to loved ones, and access to resources that enhance their quality of life. More specifically, their top motivations are: being closer to family and friends (36%); downsizing (33%); reducing living expenses (26%); starting fresh in a new phase of life (24%); and better weather (20%).

The survey also highlights the importance of community and affordability when retirees select a place to live. The top factors they consider include affordable cost of living (65%), proximity to family and friends (61%), access to quality healthcare (49%), low crime rates (48%) and good weather (42%).

Other notable factors include leisure activities (28%), walkability (24%) and convenient transportation options (20%). Some retirees also value pet-friendly housing, cultural opportunities and community engagement, which Transamerica noted underscores the importance of diverse and inclusive living environments.

Changes to living situations may, of course, depend on retirees’ financial situations. Many retirees face significant challenges in managing their money, with the median total household savings (excluding home equity) estimated at just $71,000. Meanwhile, 14% of retirees report having no retirement savings at all, while 29% have less than $100,000 saved.

Household Composition and Housing Trends

Despite the desire for community, most retirees must find while living in their own private residences. Most retirees live in single-family homes (74%), with smaller proportions residing in multi-unit housing (21%) or retirement communities (3%), according to the survey.

Among married or partnered retirees, the majority live with their spouse or partner (54%). However, a notable 26% of retirees live alone.

Intergenerational living arrangements are also prevalent, with 23% of retirees sharing their home with children (19%), grandchildren (6%) or even parents (2%). These living situations highlight the continued role retirees play in family dynamics, even after stepping away from the workforce, according to the researchers.

“Whether deciding to own or rent, it’s critical that pre-retirees and retirees factor the costs, benefits, and potential risks,” says Collinson. “On one hand, homeownership can bring home equity and help serve as a hedge against inflation but it also involves a mortgage (for many people), property taxes, on-going maintenance, repairs, insurance-related costs and fluctuations in market value. In contrast, renting offers greater flexibility, but there’s also the risk of rent increases that may be difficult to absorb if living on a fixed income.”

Homeownership remains a cornerstone of retirement security, with 73% of retirees owning their homes. The median home equity among retirees stands at $114,000, but one in four retirees (24%) lack home equity entirely.

The findings are based on a 25-minute online survey conducted by The Harris Poll on behalf of the Transamerica Institute and Transamerica Center for Retirement Studies. The survey included 10,002 U.S. adults, with a subsample of 2,404 retirees, conducted between September 14 and October 23, 2023.