Thinking about moving to a 55+ community? Once limited to the Sunbelt, these developments, designed for people 55 and older, can now be found throughout the nation, from Washington state to Texas, Virginia, the Carolinas and the Northeast. And more of them are popping up.
Marilyn Burke, 60, and her husband, Martin Burke, 66, sold their five-bedroom home in Silicon Valley and purchased a three-bedroom contemporary in Cresswind Wesley Chapel, a 55+ community in Monroe, N.C. The couple closed in November 2022, paying $745,500. Now, they fill their days with trivia contests, happy hours, community concerts, pickleball and mah-jongg games. “We wanted a community that had activities because we were moving somewhere where we knew no one,” says Marilyn. “We’ve met so many people from different walks of life, but with similar interests, and all from our same age group.”
The pros and cons
Like the Burkes, many older adults are drawn to 55+ communities because they want to live an active lifestyle — playing tennis or pickleball, meeting friends for coffee, joining clubs, attending educational or cultural activities and more — and they want to have plenty of amenities at their fingertips. “They’re seeking the ability to host family and friends, explore hobbies, and maybe get into a sport they always wanted to play,” says Karl Mistry, executive vice president of Toll Brothers, a luxury builder that constructs 55+ communities under the brand name Regency. “These are active communities. The clubhouses and fitness centers are always busy.”
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Many builders create developments that are akin to country clubs, with large and glitzy clubhouses, full-time lifestyle directors, on-site entertainment and dining venues. These facilities make it easy to meet new friends, socialize, get exercise, and avoid the isolation and loneliness that older adults often face.
Although many people think of a 55+ community as a place to land after they retire, you can move in anytime as long as you meet the age requirements. Jody Linick, 61, is a certified bookkeeper for small businesses. Her husband, Christer Hagghult, 58, still works, too, as an airplane mechanic. In December 2022, the couple spent $937,000 to purchase a three-bedroom home with a den and views of Mount Rainier at Trilogy at Tehaleh, a 55+ community in Bonney Lake, Wash. Now, when they’re not working, they stay busy at the community lodge, which has a pool, gym and restaurant. Plus, Linick enjoys on-site water aerobics and line dancing. “You don’t move here for the house,” she says. “You move here for the community.”
Convenience is another advantage of living in a 55+ community. Residents enjoy a low-maintenance lifestyle, with the homeowners association (HOA) handling landscaping and snow removal. Depending on the community, exterior maintenance of the homes may be included as well. Some communities offer services such as transportation to nearby grocery stores or medical facilities for residents who no longer drive. Generally, it’s illegal to discriminate against homebuyers based on familial status. But the Housing for Older Persons Act allows age-restricted communities to bar children as residents, “provided that at least 80% of the units in the community are occupied by at least one person 55 or older,” says Mark F. Grant, a partner at Greenspoon Marder, a law firm in Fort Lauderdale, Fla., and a certified specialist in condominium and planned-development law. Many residents prefer the peace and quiet that comes with living in an age-restricted community.
These active-adult communities are not right for everyone, however. If you love being around kids or would rather live somewhere with more age diversity, for example, you may not enjoy the experience. Plus, 55+ communities come with restrictions — namely, the HOA’s rules and regulations, which may limit what you can plant, the pets you can have and whether you can alter the exterior of your home. Although most associations are run smoothly, there are times that life under a board of directors and property manager can be frustrating.
HOA rules may also limit how long your grandchildren can visit. In the Burkes’ community in North Carolina, guests younger than 18 are limited to stays of less than 30 days, unless they are college students home for the summer. Some communities restrict young visitors to even shorter stays. So before committing to buy a home in a 55+ development, be sure to check its HOA’s governing documents if you hope to host your grandchildren for extended periods.
Keep in mind that 55+ communities differ from those that offer supportive care, such as assisted-living, memory-care and skilled-nursing facilities. These communities are regulated differently and typically provide health care, dining and other services that vary as the needs of the residents evolve. Many of these communities also offer independent living and lots of amenities and activities.
The financial aspects
Depending on the market and the development, you may pay more to buy a home in a 55+ community than a similar home in a place that’s not age-restricted. According to the National Association of Home Builders, the median price of an age-restricted, single-family home on which construction started in 2023 was $500,000, compared with $422,000 for one that wasn’t age-restricted. That’s because the value of the amenities is built into the home’s pricing. “Active-adult communities always have much more elaborate — and expensive — amenities than typical communities do,” says Brad Hunter, a housing industry consultant with Hunter Housing Economics in West Palm Beach, Fla. “They go far beyond the pool/gym combo that you see in family-oriented communities.”
Many 55+ buyers finance their purchases by selling the homes they raised their families in. Some use the home equity they’ve built to pay cash for their new home. According to data provider Intercontinental Exchange, tappable equity — the amount of equity homeowners can access while retaining at least 20% equity in their homes — hit a new peak in June 2024, at $11.5 trillion, a year-over-year increase of 9.2%. That means many homeowners are sitting on a pile of cash that could be available to redeploy toward a new home when they sell.
You should also be prepared to pay fees. Not only do 55+ communities charge monthly HOA fees to cover operating expenses, but such communities also often charge new homeowners an up-front fee. Linick, for example, had to pay a “lodge initiation fee” of $7,500 when she moved in and now pays $368 a month.
Fees at even the best-run HOAs are escalating as associations struggle to keep up with increases in operating costs, particularly insurance premiums. According to an August 2024 report from real estate brokerage Redfin, which examined HOA fees in Florida over a three-month period that ended July 31, the median monthly fee in the Tampa area jumped 17.2% compared with the same period a year earlier. Other areas had similar increases, including Orlando (up 16.7%) and Fort Lauderdale (up 16.2%).
Although older adults commonly assume that their living costs will decline when they downsize or move into a 55+ community, experts say that isn’t always true. “There are a lot of extra expenses that they may not have thought about,” says Michael Silver, a certified financial planner with Baron Silver Stevens Financial Advisors in Boca Raton, Fla. “If they’re living in a community with a lot of amenities, the costs to maintain them have become astronomical, and there have been all sorts of assessments and extra fees.”
Silver says that buyers in active-adult communities need to factor in the impact of rising costs and inflation on their budgets. “That way, if their expenses go up by a lot, they aren’t put in a compromised position,” he says.
Roberta Lee knows that firsthand. Lee, 77, a retired real estate broker, purchased a 2,552-square-foot villa in a 55+ development in Lake Worth, Fla., in September 2022, paying $395,000. When she moved in, her monthly HOA fee was $728. Now, two years later, it’s $961. Additionally, she paid an up-front membership fee of $10,000 for access to the on-site golf course. Back then, the monthly golf membership fee was $628; now, it’s $900.
“I’ve always been very conservative when it comes to money,” she says. “My home expenses, including taxes, insurance and my mortgage payment, were OK when I bought, and I thought it was a great deal. Well, it turns out it’s not such a great deal.”
Lee is now pushing the boundaries of the annual budget that her financial planner set up for her. Her rising living expenses leave her little for discretionary spending, such as summers in North Carolina to escape the Florida heat. She’s considering financial alternatives, such as moving, dropping out of the golf club or getting a part-time job to augment her income.
Finding the best fit
If you’ve decided that living in a 55+ community may suit you, give some thought to the location. “You want to nail that first and then focus on the other aspects,” says Walker Wagner, a real estate agent with Coldwell Banker in Plano, Texas. She says many of her older clients want to live near family and only consider how many miles away they’ll be. But, she says, traffic in Dallas–Fort Worth, for example, is so congested now that 55+ buyers may find that their trip to visit family takes a lot longer than it used to.
Then study the options in the area where you’d like to settle. The homes, amenities, fee structures, rules and regulations and permitted age groups differ from community to community. Are you looking for a very active community, with lots of clubs and on-site recreational activities? Or do you mostly want to relax, reading a book on your patio or lounging by the pool? Do you still work, or are you retired and seeking friends who can spend time with you during the day? (Even if you’re not retired yet, you may want to have more social interaction down the road.) How old are your future neighbors? Marilyn Burke spent five years researching 55+ communities before she found her home in North Carolina. “Each offered something different,” she says. “We were looking for a younger community, with an average age of 55 to 65.”
Consider special-interest communities. Are you a golf or tennis player? Some communities have more-extensive facilities than others, as well as leagues, lessons and tournaments. There are communities that cater to other interests, too. Latitude Margaritaville communities, for example, are inspired by Jimmy Buffett’s music and offer a lifestyle “built on the four pillars of fun, food, music and escapism,” says William Bullock, president of the Latitude Margaritaville division of master developer Minto Communities. The communities offer recreation, dining and entertainment options designed to appeal to Parrot Heads. Latitude Margaritaville Daytona Beach, in Florida, was the first community to open, followed by locations near Hilton Head, S.C., and Panama City Beach, Fla. Plans are under way for additional communities in Texas and other popular destinations.
Finally, visit communities in person. Sure, you can read about them online and even take a virtual stroll through furnished models. But nothing substitutes for going to each community, touring the models, checking out the amenities and talking to your future neighbors. Consider a “stay-and-play weekend,” offered by many builders to allow prospective homebuyers to stay in a home on-site and partake in activities as though they were residents. Latitude Margaritaville Hilton Head offers stay-and-play weekends for $199 per night, for two or three nights, during which you have access to all of the community’s amenities and use of a golf cart.
Rather stay put? Tips for aging in place.
If the prospect of an active, low-maintenance lifestyle isn’t enough to draw you to a 55+ community, here’s one more consideration: Many homes in these communities are built with design elements that allow residents to age in place gracefully. Common features include single-level living, no-step entries and walk-in showers, says Mikaela Arroyo, a vice president at John Burns Real Estate Consulting.
Still, if you prefer not to move, you’re not alone. According to a survey by AARP, in 2021 — the most recent date for which statistics are available — 77% of adults 50 and older said they wanted to remain in their homes for the long term. “Usually, they have established a network of community connections,” says Jamie Gold, a wellness-design consultant in San Diego who holds the Certified Aging-in-Place Specialist (CAPS) designation from the National Association of Home Builders (NAHB). “It could be close to their place of worship, friends of many years or shopping that they enjoy.”
Staying in place not only is less stressful than moving but also often provides a sense of security for older adults, keeping them close to their memories and familiar surroundings. But homes often need to be adapted to allow for aging in place. Older adults may not be able to climb stairs, for example, or lean down to reach low cabinets.
The good news is that older homes can be updated, often without a major remodel. “If they have a first-floor bedroom and bathroom, they won’t have to put in an elevator or chair lift unless they use a home office or laundry room upstairs,” Gold says. Simple upgrades, such as adding a seat in the shower or installing pull-out shelves in base cabinets, make life easier for occupants whose mobility may become more limited as they age. Other common upgrades include:
- Ramps into the home
- Handrails beside all steps and porches
- Lever-style doorknobs, which are easier to turn than round ones
- Larger cabinet and drawer pulls
- Higher toilets
- Improved lighting throughout the house
- Light switches and thermostats moved to lower locations on the walls
Consult an occupational therapist or a CAPS professional, many of whom are remodelers, general contractors, designers, architects or health care consultants who can not only advise you on retrofits but also perform any necessary work. The NAHB website includes a searchable database of CAPS professionals (click on “Professionals With Home Building Designations” and check the box labeled “CAPS”).
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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