3 Pros and Cons to Buying a Home in a 55 and Over Community

Keep these in mind before you make your decision.

If it seems like 55 and over communities are popping up all across the U.S., well, it's because they are. Grand View Research reports that as of 2021, the 55 and over community market size was valued at over $565 billion. And it's expected to keep growing.

If you're eligible to live in a 55 and over community, you may be contemplating a move. To be clear, these communities are not assisted living facilities. You generally won't have access to onsite medical care or assistance with daily living tasks in a 55 and over community. Rather, these communities are meant to cater to homeowners of a certain age who want to enjoy different amenities and minimize the amount of maintenance work they have to do themselves.

In some cases, moving to a 55 and over community will mean saving money on a home purchase and mortgage loan. But that really varies based on location and the specific community you end up looking at.

Meanwhile, there are different benefits to moving to a 55 and over community. But there are also some drawbacks you should know about before making your choice.

Pro No. 1: Access to amenities

Many 55 and over communities are loaded with onsite amenities like tennis courts, swimming pools, and fitness centers. These can be nice perks to have in general. But they can be especially important for early retirees who need to find ways to fill their days in the absence of going to work.

Pro No. 2: The opportunity to make friends

There's no rule stating that someone aged 55 or older can't befriend a couple in their mid-30s or early 40s who lives down the block. But realistically, you're more likely to have more in common with people who are similar in age to you. And so moving to a 55 and over community gives you a chance to meet people and expand your social circle.

Pro No. 3: Less maintenance to worry about

You may be responsible for interior maintenance when you move to a 55 and over community. But your exterior maintenance will generally be covered by your community's homeowners association (HOA). Some people find home upkeep to be physically taxing as they age. Others just don't want to deal with it. If you move to one of these housing communities, you may find that you don't have to spend nearly as much time on maintenance.

Con No. 1: Having to deal with HOA fees

The typical 55 and over community requires you to join an HOA. And that could mean paying a lot of money each month in the form of dues. If you're trying to cut back on housing expenses, whether due to being retired or approaching that milestone, you may find that your HOA fees make it harder to manage your finances and meet your personal goals.

Con No. 2: Having to follow HOA rules

Not only do HOAs charge dues, but they also tend to impose rules that have the potential to be rather strict. If you're moving from a standalone home to a 55 and over community that's governed by an HOA, you may not be used to having to follow somebody else's rules, so that could end up being a problem.

Con No. 3: Potentially giving up living space and privacy

In many cases, moving to a 55 and over community will mean being limited to buying a townhouse or condo. Now it's often the case that homeowners want to downsize once they're a bit older and their children have grown up and left the nest. But if having more room to spread out is important to you, then you may not be as happy in a 55 and over community.

All told, there are benefits and disadvantages to buying a home in a 55 and over community. Consider all of these carefully before making your choice. And also, talk to any people you know who live in these communities so you can gather their feedback and take it into account.