San Diego has seen a sharp rise in renters over 65
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Nearly 11% of San Diego renters were 65 or older in 2023, up from roughly 8% in 2013, according to a new report.
Why it matters: More older Americans — and San Diegans — are renting, trading ownership for flexibility.
By the numbers: Nationwide, the share of renters 65 or older rose to 13.4% in 2023 from 10.4% in 2013.
- That age group saw the largest increase in renters of any of the age groups analyzed in a new report by retail listing site Point2Homes.
- Just two of 75 major U.S. metro areas posted a decline in the share of renters over 65.
Zoom in: Despite increasing over the last decade, the San Diego metropolitan area's share continues to trail the national level.
- It also trails the metro areas of Los Angeles (12.8%), San Francisco (13.4%), San Jose (11.2%), Sacramento (13.9%) and Riverside (11.7%).
The big picture: Many older adults are on fixed incomes and stay in their homes because they're mortgage-free or have a low interest rate.
Between the lines: That effect is especially strong in California, where voters in 1978 approved Proposition 13, which assesses a property's value when it is purchased and caps tax increases by no more than 2% per year.
- "This means that as long as property values increase by more than 2 percent per year, homeowners gain from remaining in the same house because their taxes are lower than they would be on a different house of the same value," wrote the National Bureau of Economic Research wrote in its analysis, "The Lock-in Effect of California's Proposition 13."
What we're watching: "With record numbers turning 65, the shift not only echoes the broader aging of the nation, but also may signal a new approach to housing," Point2Homes researchers wrote.