5 Money Reasons Why Boomers Are Fleeing 55+ Communities

ElinaDigital Marketing2025-07-227820

As baby boomers (those born between 1946 and 1964) began to approach the empty nest years, real estate developers saw an opportunity to create housing that would meet the needs of active older adults without children at home. They began to build 55+ communities, so named because purchasers of these homes had to be at least 55 years old, and families with young children were not allowed.

These neighborhoods were often fairly dense developments of two- or three-bedroom homes, often on one level, that had features that aging adults hoped would help them age in place and possibly enter retirement rather than having to go to assisted living or a nursing home.

Read More: Savings Needed To Be Rich in America’s Most Popular Retirement Destinations

Consider This: 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses

These communities became popular in the second half of the 20th century, beginning with Sun City, Arizona, according to research from the Journal of Social History. Soon, 55+ communities, many with gold courses and other amenities favored by that population, began springing up everywhere. Perhaps the largest of these is The Villages in Florida.

As real estate trends eventually do, the 55+ community tide is beginning to ebb, and there are several financial reasons why. Here’s what you need to know about why boomers are fleeing 55+ communities.

And if you’re second-guessing a 55+ community, check out the cheapest places to retire across America.

Community Costs Are Rising

While real estate is up everywhere, 55+ communities seem to have been harder hit than other types of housing. Homeowners’ association, or HOA, fees have risen sharply at many communities, and the cost of associated amenities is also up. With many retirees on fixed incomes, these cost increases have them rethinking their living situation.

For You: 12 Surprisingly Affordable Cities With Great Weather for Retirees

Residents Are Aging

Early residents are aging, and that means higher healthcare costs. While 55+ communities may be located near medical offices, that may not be enough for older boomers who may be looking at assisted living or skilled nursing care.

Distance From Family

Boomers may prefer to be nearer to their adult children and grandchildren, as travel becomes more expensive and often more difficult. If they live near — or even with — their children, they can not only see them more often but the children may also provide support as the boomers’ health or mobility declines. Living with or near an adult child who can help is much less expensive than bringing in a paid caregiver.

Story continues

Repair and Maintenance Costs

Homeownership becomes challenging when you can no longer do maintenance tasks and minor repairs yourself. You have to pay someone to come in and do them, which can be costly. Homeowners’ associations may have strict requirements about landscaping, so if you can’t maintain your property yourself, you have to pay a landscaper or risk being fined.

Resale Demand

With the popularity of 55+ communities over the last few decades, the market has become a bit saturated. It can take a while to sell a house in this type of community, so some boomers are selling pre-emptively so they don’t have to sell at a discount when it becomes necessary to move, per Greenhouse Black.

It’s unlikely that 55+ communities will disappear — the concept is sound, and there is definitely a need for them. But the next wave of independent housing for those near or in retirement may look a little different — it may be more flexible and less costly. It may also be more inclusive of the changing needs of aging seniors.

More From GOBankingRates