Bigger homes, not downsizing: What some US buyers want from life in a 55+ community

Moving into a 55-plus community doesn't always mean downsizing. Some buyers are choosing larger homes that better fit their lifestyles, even with years of work still ahead.

Here's what to know

Todd Warshauer, who leads Active Adult Consultants, discussed the shift in a Q&A with Business Insider. The firm advises active adult communities and trains their sales teams.

Warshauer has visited roughly 1,500 active adult communities nationwide and watched buyers' priorities change during more than 25 years in residential real estate. 

Remote work and flexible schedules have made it easier to move before retirement, Warshauer said. He is seeing more people in their 50s consider these communities with at least a decade left in their careers.

Fitness, wellness, travel, and social connections feature in buyers' wish lists alongside golf and reduced maintenance.

For Warshauer, "rightsizing" better describes what these buyers want.

"I've seen plenty of buyers purchase homes larger than the ones they're leaving," he told Business Insider. "They're looking for a home and community that better fit the life they want to live."

More background

Warshauer pointed to the desire to leave behind maintenance, unused space, or a neighborhood that no longer fits and the appeal of friendships, activities, and convenience as forces behind these moves.

After decades devoted to family and career, some buyers want more time for themselves, he said.

Baby boomers have driven much of the market for roughly a decade or more, often viewing the move as part of retirement. Gen X buyers, however, may still have jobs, children to raise, or other financial obligations when they begin considering these communities.

Warshauer noted that homeowners with 3% mortgages could face significantly higher rates when buying another home. New-construction prices and homeowners association fees can also put desired lifestyle changes further out of reach.

What can be done?

Warshauer urges buyers to consider whether a home will still meet their needs in 15 to 20 years along with their preferred activities, social connections, and proximity to family. He recommends working through those lifestyle questions before focusing on a particular property.

Community leasing restrictions also belong on the pre-move checklist, he said, alongside borrowing costs, insurance coverage, property taxes, and association charges.

The expanding 55-plus rental market offers many of the amenities and activities available in for-sale communities, with flexibility for people who are still working or have not decided on a long-term location.

Individual communities may set stricter age policies than federal rules require, Warshauer said. Under the federal rules governing most 55-plus communities, at least 80% of occupied homes must have a resident aged 55 or older.

He also noted that communities open to all ages may offer comparable amenities without age restrictions.

"The goal should be making these decisions proactively rather than waiting for a health issue or other circumstance to force the conversation," he told Business Insider. 

Where can I learn more?

Choosing a home before retirement means looking beyond size to costs, upkeep, and how your needs may change. 

• A homeowner nearing retirement has weighed downsizing as a beloved house threatens to consume 65% of costs.

• A retiree considered selling a paid-off home to rent rather than buying a smaller one.

• In Minnesota, retirees bought into a co-op to leave mowing, snow, and surprise bills behind.

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