DALLAS: More baby boomers are starting to return to renting after years of living in their own homes. According to data released today, renting increased for adults between ages 50 and 75 from 2004 to 2013.
So, why are boomers returning to renting? Here are a few reasons:
6. They’re looking to make other investments.
This may sound a little counterintuitive – you might be thinking, “Isn’t renting the opposite of investing?” However, if boomers have paid off their mortgage entirely and are looking to sell a home and downsize, the capital they can gain just from selling their house is usually pretty substantial. And if that money is added to retirement investment accounts, rather than used to purchase a new home, it can begin to accrue interest immediately, making it even more valuable.