Is Moving to a Retirement Community the Solution to Rising Home Costs?

Many older adults face significant financial strain due to rising homeownership costs, including property taxes, maintenance, and utilities. According to the Harvard Joint Center for Housing Studies (JCHS), these burdens are especially felt by low-income seniors, households of color, and those with limited resources.

As a result, adults ages 55 and up are considering retirement communities as a potential solution to rising home costs. But do these communities truly address the financial challenges they would encounter if they chose to remain in their homes?

The Cost of Staying at Home

Staying in your current home, or aging in place, can seem like the most affordable option at first, but there are various costs to consider that can add up over time. These expenses may fluctuate depending on the age of the home, the location, and the lifestyle you maintain.

Here are the key costs involved in staying at home:

• Mortgage/rent: Unlike rent, your mortgage can eventually be paid off, but both will be included in the cost of aging in place. Additionally, rent can be increased by your landlord.
• Property taxes: Property taxes vary by state and county and often increase annually.
• Home maintenance and repairs: Average home maintenance costs range from $4,000 to $22,000 annually depending on the home’s age, condition, size, location, and features.
• Utilities: Utility costs, which include things like natural gas, heat, water, and sewer, can fluctuate, but the recent average is $583 per month.
• Insurance: In 2025, the annual average cost of homeowners insurance is $2,601, but premiums tend to increase as the property ages.
• Healthcare: As your healthcare needs change, you may see a need for additional medical care, such as an in-home health aide, which can cost about $78,000 annually.

“Many people assume staying in their home is always the cheaper option, but that’s not always the case, especially with rising home prices, property taxes, and maintenance costs,” said Matt Harris, safe money analyst at Red Stone Retirement.

The Cost of Moving to a Retirement Community

Retirement communities offer a variety of amenities and services, but they also come with specific costs that can vastly differ depending on the type of community, its location, and the level of care needed. Here are the costs to consider when moving into a retirement community:

• Entrance fees: Retirement community entrance fees can be costly. Independent living entrance fees, for example, are $152,524. The good thing is you only pay this once, and it may be refundable up to a certain percentage if you decide a retirement community no longer aligns with your long-term goals.

“The initial move-in cost or entrance fee can feel like a big expense. However, when compared to ongoing homeownership costs, many retirees find it’s actually a financially sound move over time,” Harris said.

• Monthly fees: Similar to entrance fees, monthly fees vary, but depending on the type of community you choose, they may be more affordable than aging in place. For example, assisted living costs about $5,900 per month, while nursing homes cost about $9,277 per month.

“A retirement community often consolidates expenses into a predictable monthly fee that covers housing, utilities, amenities, and sometimes even meals and healthcare services. When you factor in home repairs, lawn care, and potential renovations for aging in place (like stairlifts or walk-in showers), the costs can add up quickly. While the upfront price of moving might seem high, the long-term financial predictability can actually be a relief,” Harris noted.

Other Factors to Consider

When deciding between staying in your home or moving into a retirement community, there are several important factors to consider beyond cost, including:

• Maintenance needs: Are you able to maintain your home (yard work, repairs, cleaning) as you age?
• Healthcare needs: Do you need specialized medical care that is more easily accessible in a retirement community? Or do you anticipate needing long-term care or assistance that could be offered in a retirement community but might be more difficult to arrange at home?
• Social interaction/community: How important is it for you to have a social network of friends and neighbors in your demographic?
• Lifestyle: Are you hoping to remain active as you age? Do you want easy access to parks, indoor and outdoor pools, tennis courts, and other recreational options?

“Beyond just the financial aspect, there are a few key things to consider,” Harris said. “Will staying at home keep you active and socially connected, or could it lead to isolation? If your health needs change, would your current home still be the right fit, or would you need to move later under more stressful circumstances? Does staying in your home align with your long-term financial goals, or would transitioning to a community help preserve your wealth?”

The Bottom Line

Moving into a retirement community can be a practical choice for seniors looking to cut housing costs. Your monthly fees include a variety of amenities and services that may be more predictable and a manageable cost compared to aging in place. However, the cost of retirement communities can vary, so it is important to do your research and compare your options to ensure this move will ease the financial burden you might experience living at home.