55+ Communities Draw Working Buyers Before Retirement

By Amara Osei

Todd Warshauer has more than 25 years in residential real estate and has visited nearly 1,500 active adult communities nationwide. He leads Active Adult Consultants, which provides consulting services and sales training for 55+ and active adult communities.

In an interview, Warshauer said he is seeing more Gen X buyers choose active adult communities while still working full time across the United States. Some buyers in their 50s have another 10 to 15 years of their careers ahead.

The trend does not mean the average buyer is younger across the board. Remote work and flexible schedules have helped prompt earlier consideration over the past five to six years.

Who is moving before retirement?

Warshauer said buying into a 55+ community is usually discretionary because most buyers already own a suitable home and do not need to move. A 57-year-old worker, for example, may decide they do not want to wait eight or 10 years for a different lifestyle.

He said the bigger change is not necessarily about retiring earlier; buyers are choosing to live differently sooner. Many residents keep working, consult, start businesses, volunteer or pursue interests they lacked time for earlier, rather than slow down.

Baby boomers have largely defined active adult housing over the past 10 to 15 years and often tied a move to retirement. Warshauer said Gen X buyers approach the market differently: many still work, raise children and carry other financial responsibilities.

He cautioned that these are not universal differences. He said Gen X appears less inclined to wait for retirement before making a lifestyle change, a mindset shift Warshauer considers important.

What drives an earlier move?

Warshauer said the key question goes beyond choosing a house. He asks: “How will I live here?” The market turns on how buyers want to spend the next chapter and what they want next, rather than only what they leave behind.

He splits the decision into push and pull factors. Push factors include home maintenance, unused space, changing family dynamics and neighborhoods that no longer fit. Pull factors include friendships, activities, wellness, convenience and more time for enjoyable pursuits.

Warshauer said adults who spent 20 to 25 years raising families and building careers can use a community to focus on themselves while still working. New friendships can be difficult to form as adults, while shared interests create social ties.

Someone aged 55 may also plan for the next 25 to 30 years. Warshauer said there is no reason to wait until 70 to begin enjoying that phase of life.

Why is rightsizing replacing downsizing?

Warshauer said the market has evolved from buying a home in a retirement community to buying into a lifestyle. Downsizing, golf and reduced maintenance remain important, but current buyers also expect wellness, fitness, social connections, recreation, travel and experiences.

He prefers “rightsizing” because buyers may purchase homes larger than the ones they leave. Their priorities often shift from careers, family and accumulating possessions toward relationships, experiences, freedom and time. The target is a home and community that fit the life buyers want, rather than a smaller house by definition.

What do 55+ communities require?

Warshauer said most 55+ communities operate under federal housing rules requiring at least 80% of occupied homes to have at least one resident age 55 or older. Individual communities may impose stricter policies, so people under 55 cannot assume they qualify. All-age lifestyle communities can offer similar amenities without those age restrictions.

He prefers the terms “active adult community” or “active lifestyle community” because, in his view, “retirement” suggests an ending rather than what comes next. His buyers focus on experiences, time and the people they spend it with.

When does renting make more sense?

Warshauer said renters should define their future lifestyle before choosing real estate. Key questions include location, proximity to family, activities, social connections and whether a home will work for 15 to 20 years. Buyers able to carry two properties or rent one out may benefit from purchasing a future home early.

According to Warshauer, ownership decisions require consideration of financing, insurance, taxes, HOA fees and rental restrictions. Many 55+ communities also have specific leasing and occupancy rules. He said the 55+ rental market has expanded considerably and offers many of the same amenities, activities and social opportunities as for-sale communities.

Renting can suit people who remain employed or have not settled on a long-term location. Flexibility allows them to test the lifestyle without ownership’s financial commitment or maintenance responsibilities.

What stops Gen X buyers from moving?

Warshauer said Gen X buyers with a 3% mortgage may struggle to justify selling and buying at a significantly higher rate, even with substantial equity. New construction pricing and HOA fees make the calculation more difficult. That constraint does not eliminate demand for a move; it means the finances may not match the desired lifestyle.

He said: “The goal should be making these decisions proactively rather than waiting for a health issue or other circumstance to force the conversation.” In his advice, the practical sequence is to define the desired lifestyle, test location and financing, and act before circumstances narrow the options.