What type of housing is preferred by most people who are approaching retirement?

According to AARP, a powerful preference for "aging in place" means a majority of adults aged 50 and older want to remain in their homes. This foundational desire is key to understanding what type of housing is preferred by most people who are approaching retirement, though it represents just one of many compelling options.

Quick Summary

Most people nearing retirement favor staying in their current home, a trend known as 'aging in place,' which prioritizes independence and familiarity. Other popular choices include downsizing to a smaller, more manageable residence, moving to an active adult 55+ community, or opting for independent living to enjoy a social, maintenance-free lifestyle.

Key Points

• Aging in Place is a Top Desire: Many older adults prefer to stay in their current homes, valuing independence, emotional ties, and existing community connections.

• Downsizing Offers Simplicity: Moving to a smaller home, condo, or townhome can reduce maintenance responsibilities and provide financial flexibility.

• Communities Provide Social Opportunities: Active adult (55+) and independent living communities offer built-in social networks, amenities, and a maintenance-free lifestyle.

• CCRCs Plan for the Future: Continuing Care Retirement Communities (CCRCs) provide a continuum of care on one campus, from independent to skilled nursing, eliminating the need for future moves.

• Home Modifications are Often Necessary: For those who choose to age in place, modifications like grab bars, ramps, and accessible bathrooms are often required to ensure safety.

• The Best Option is Personal: The right housing choice depends on an individual's unique finances, health, lifestyle, and comfort level with change.

The Overwhelming Choice: Aging in Place

The most prominent trend in retirement housing is the desire to remain in one's current home. This preference, known as "aging in place," is motivated by several key factors. Emotional attachment to a long-time residence, familiarity with the surrounding neighborhood, and a strong desire to maintain independence all contribute to this choice. Many older adults feel a sense of comfort and safety in their own space, viewing it as a sanctuary filled with memories. For those with strong neighborhood connections, staying put also means preserving important social networks.

However, aging in place is not without its challenges. Only about 10% of existing homes are considered "aging-ready," meaning they lack basic accessibility features like a step-free entryway or a first-floor bedroom and full bathroom. This often necessitates significant home modifications, which can range in cost from a few thousand to over one hundred thousand dollars.

Making Your Home Aging-Ready

Key modifications include:

• Bathroom safety: Installing grab bars in showers and near toilets, adding non-slip flooring, and converting to a walk-in shower.
• Improved mobility: Installing a stairlift, widening doorways, and ensuring a step-free entry into the home.
• Smart technology: Utilizing voice-controlled assistants, automated lighting, and medical alert systems.
• Main floor living: Creating or converting a primary bedroom and bathroom on the main level to avoid stairs.

Downsizing for a Lighter Lifestyle

For many, retirement is an opportunity to shed the burdens of a large, high-maintenance home. Downsizing involves moving into a smaller, more manageable property, such as a condo, townhome, or a smaller single-family house. This choice is often driven by a combination of financial and lifestyle factors.

Downsizing can lead to significant financial benefits, including lower property taxes, insurance premiums, and utility costs. Selling a larger home can also free up significant equity, providing a nest egg for travel, hobbies, or covering future expenses. On the lifestyle front, a smaller space means less time spent on cleaning, yard work, and repairs, allowing for more time to enjoy retirement pursuits.

Popular Downsizing Options

• Condos and Townhomes: These offer a low-maintenance lifestyle with many exterior tasks handled by a homeowners association (HOA). They often come with shared amenities like pools and fitness centers.
• Active Adult (55+) Communities: Similar to downsizing, these are age-restricted communities with a strong focus on social and recreational activities. Amenities can include clubhouses, golf courses, and organized events. HOA fees typically cover exterior maintenance and groundskeeping.

Community Living with Support and Amenities

For those seeking a more vibrant social environment or a greater level of convenience, various community living options are available. These provide a built-in social network and a range of services designed to simplify daily life.

Independent Living Communities

These communities are designed for active, independent seniors who want to simplify their lives. Residents live in private apartments or cottages and enjoy amenities and services such as housekeeping, prepared meals, and transportation. This offers a social and worry-free living experience without requiring assistance with daily activities.

Continuing Care Retirement Communities (CCRCs)

CCRCs, also known as life plan communities, offer the ultimate peace of mind. They provide a range of care levels on a single campus, from independent living to assisted living and skilled nursing care. This means a resident can transition between care levels as their needs evolve without having to move to a different location. CCRCs are a significant financial commitment, but they offer stability and comprehensive long-term planning.

Comparison of Common Retirement Housing Options

Feature	Aging in Place	Downsizing	55+ Community	Independent Living	CCRC
Maintenance	All owner's responsibility, can be burdensome.	Reduced, often covered by an HOA for exterior.	Reduced exterior, covered by HOA.	Mostly handled by community staff.	Included, varies with care level.
Cost	Property taxes, utilities, and potentially expensive modifications.	Lower property taxes, utilities, potential HOA fees.	Initial purchase/rent + HOA fees.	Monthly fees covering rent, services, and amenities.	High entrance fee + monthly fees (predictable costs for care).
Services	Arranged separately by the individual (e.g., home care, lawn care).	Minimal services included; all care is outside.	Few services included beyond common area maintenance.	Can include housekeeping, meals, transportation.	Comprehensive services that expand with care needs.
Community	Dependent on existing social networks.	Varies by new neighborhood; often less inherent community.	Built-in social network with organized activities.	Built-in community, often with a full activity calendar.	Strong, close-knit community with social programming.
Care Levels	All care is outsourced and arranged by resident/family.	All care is outsourced and arranged by resident/family.	All care is outsourced; typically no medical staff.	No medical care included, but services can be added.	Multiple care levels available on one campus.

Making the Right Choice

Ultimately, there is no single best answer to what type of housing is preferred by most people who are approaching retirement. The ideal option is a deeply personal choice influenced by factors like your financial situation, current and future health needs, desired lifestyle, and proximity to loved ones. The trend of aging in place proves that many value familiarity and independence above all else, but that requires proactive planning and potentially costly home modifications.

For those seeking simplicity and reduced maintenance, downsizing offers a path to financial freedom. For a vibrant social life and convenience, a 55+ or independent living community might be the perfect fit. And for the security of a long-term care plan, a CCRC provides a comprehensive solution. The best first step is to thoroughly evaluate your priorities and explore the various options available, considering what will provide you with the most comfort and peace of mind in your later years. An excellent resource for additional guidance on retirement community options can be found via the American Retirement Homes organization.

Frequently Asked Questions

What are the biggest challenges of aging in place?

The main challenges include the high cost of necessary home modifications, potential for social isolation if mobility decreases, and the eventual need for greater care than can be provided at home. Not all homes are suitable for long-term accessibility without significant changes.

Is downsizing always cheaper than staying in my home?

Not necessarily. While downsizing often leads to lower ongoing costs like property taxes and utilities, it can involve significant upfront expenses such as moving costs, purchasing a new home, or paying HOA fees. It's crucial to compare all costs involved, including potential future care expenses.

How does a CCRC differ from an independent living community?

An independent living community caters to active, healthy seniors who need minimal support, focusing on amenities and socialization. A CCRC offers a continuum of care on one campus, meaning residents can move to assisted living or skilled nursing without relocating, providing long-term security.

How can I assess if my current home is 'aging-ready'?

To assess your home, look for features like a step-free entryway, a bedroom and full bathroom on the first floor, and adequate lighting. You should also consider potential modifications such as grab bars, ramps, and non-slip surfaces in high-risk areas like bathrooms.

Do I have to sell my home to move into a retirement community?

No, not always. While many move to a new residence, some options, like independent living or 55+ communities, offer rental units. For CCRCs, there is often an entrance fee, which may or may not be refundable, alongside monthly fees.

How far in advance should I plan my retirement housing?

It is wise to start planning several years before retirement. This allows ample time to research options, assess financial implications, handle the emotional process of decluttering, and, if needed, explore the complexities of home modifications or community waiting lists.

How important is location when choosing senior housing?

Location is extremely important. It can affect your access to family, friends, medical services, and familiar amenities. Proximity to social networks and desired services can have a significant impact on your mental health and overall quality of life.