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Psst, here’s one of real estate’s best-kept secrets that many people are surprised to learn: purchasing a home in a 55+ community when you are younger than 55 is not only possible but might be everything you’re looking for.
And with housing inventory remaining low, more and more younger people could find themselves considering the appeal of a 55+ community.
The townhouses, condos, and single-family homes in such communities tend to be more recently built (so there are no costly deferred maintenance problems to fix). And they’re often priced more affordably than other homes in the area.
“The homes tend to be smaller and require less upkeep,” says Melissa Hoff of The Hoff Group with Compass. “The communities are typically well-manicured because the associations usually control the landscaping and common areas.”
Intrigued? Read on for the lowdown about living in a 55+ community.
What is a 55+ community?
Retirement communities, also known as active adult communities, are communities designed for retirement living.
Everything about them—from homes with floor plans that are easily accessible to green areas for walking to a clubhouse or social center for community meetups—has been planned with older residents in mind.
Depending on the location and climate, amenities, such as a pool and tennis or pickleball courts, might also be available.
How can buyers younger than 55 live there?
How is it that a 55+ community can allow younger buyers? When the Housing of Older Persons Act (HOPA) passed in 1995, it allowed these communities to set a different age limit for a portion of inhabitants. This is sometimes referred to as the 80/20 rule.
“HOPA states that 80% of the community must be occupied by persons over 55,” explains Hoff. “It is at the association’s discretion as to how to handle the other 20%, as spelled out in their association documents.”
And so, in some associations, the remaining 20% may be purchased by buyers under 55.
“The age varies from state to state,” says Hoff.
So are kids allowed?
Rules about whether or not children can live in a 55+ community can vary widely.
“I always recommend that buyers speak with their real estate attorney to review the association documents before they contract on any property,” says Hoff.
What’s definitely missing are schools, playgrounds, and social groups for kids. But for homebuyers without children, all that may be a plus.
“The taxes tend to be lower since their tax dollars aren’t funding schools,” says Hoff.
Besides lower taxes, here are two pros and one major con of living in a 55+ community—no matter your age.
Pro: Newly built, no renovation required
Deborah, 53, bought her home in California with her mother, who will deed it fully to her in two years, when she turns 55. She really loves that the home was a new build.
“There weren’t a lot of new places available, and everything I looked at needed $100,000 in renovations,” she says. “I don’t have the temperament to deal with renovations.”
The 55+ community she ultimately chose and the home she purchased checked all her boxes.
“Two bed, two bath, garage, closed backyard, office—it’s great for working at home,” says Deborah. “I liked the location, it was very affordable, and I wouldn’t have to make repairs for a while.”
Did she have any reservations about being one of the youngest residents?
“I did expect a lot of elderly people,” she says, “But there are a lot of people my age. And because it’s a new build, we all share info on pest control and backyard landscaping costs.”
Pro: Green space, walkability, and community
For Lakisha Simmons, 43, CEO of retirement planning company The Wealthy AchieveHer, green space and walkability drew her to her 55+ community in Tennessee.
Simmons had been working toward early retirement—or at least becoming work-optional—for years, and she was getting close. Then COVID-19 hit, and that just accelerated her plans. She found herself yearning for an antidote to city living.
“I was really tired of the hustle and bustle and ready to relax and just breathe the fresh air, and go to the parks, walk to the greenway, and wave to my neighbors,” says Simmons.
Though still in her 40s, with two school-age children, Simmons says her 55+ community is everything she thought it would be.
“I’m just one of the very few people of color, who is in my 40s or younger,” says Simmons of her homeowners association and its HOA meetings, where everyone shows up. “Just about everyone there is retired. [But] everyone knows everyone here, so we can watch out for each other. That’s the biggest pro: the community aspect and the support from your neighbors.”
The park is also a big plus for Deborah, who has a dog.
“I definitely know all my neighbors—and their dogs’ names,” she says.
Con: There’s not much nightlife
It takes a specific type of younger person to enjoy what a retirement community offers.
“If you’re younger than 55, you have to enjoy a slower pace and not need to be right in the center of the action,” says Simmons. “If you’re OK with the slower pace, I would absolutely recommend it.”
Planned communities are also usually a bit of a hike from the center of town. So be prepared to hop in your car to run any errand.
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