Today’s retirees have multiple housing options. They range from aging in place and age-restricted apartments and communities that provide no medical services to nursing homes that offer 24-hour skilled care.
Careful planning is the key, especially because medical and social needs will change as residents age.
At the same time, some may have accumulated a large amount of assets — including their homes — during their lifetimes. Estate planning will help ensure that those assets will go to the people or charities that they wish.
Here's a look at housing options for people over the age of 60 and what they could consider based on their preferences, age, income and health.
1. Aging in place
A 2024 AARP survey found that 75% of Americans over 50 want to age in place, but 44% believe they will not be able to stay in their current home. The gap between wanting to stay and being able to is largely a question of home design. Only about 10% of U.S. homes are equipped to fully accommodate the needs of older adults, according to a 2020 report cited by Retirement Living. The website, which reviews products and services for older adults, defines needs as having a step-free entryway, a main-floor bedroom and bathroom, and at least one bathroom accessibility feature.
The most important modifications focus on eliminating fall risks and moving daily living to one level. A step-free entry, which can be achieved with a ramp costing $1,000 to $4,000, is a starting point. Converting a ground-floor room into a bedroom and ensuring a full bathroom is nearby eliminates the need for stairs. In the bathroom, where falls are most common, grab bars, a curb-less shower, nonslip surfaces, a shower bench and a raised toilet are among the changes that make the biggest difference.
Rodney Harrell, vice president of family, home and community at AARP, recommends starting with an expert such as a certified aging-in-place specialist, a designation created by AARP and the National Association of Home Builders. But homeowners do not need a professional to begin.
"Start small," Harrell said. "People get overwhelmed with the idea of aging, and that is one reason people push it off."
Beyond the home itself, the surrounding neighborhood matters. Access to healthcare, grocery stores and daily services all factor into whether aging in place is realistic.
The village model, a membership-based network of older adults who pool resources for transportation, social activities and household help, is one growing option. The Village to Village Network reports more than 52,000 participants in 285 communities across 43 states.
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2. Reverse mortgage
As more Americans reach retirement with limited savings, many homeowners are turning to reverse mortgages to tap the equity in their homes.
The most common type, the Home Equity Conversion Mortgage, or HECM, is federally insured and backed by the Federal Housing Administration. Eligible homeowners can receive proceeds as a fixed monthly income, a line of credit or a lump sum. Unlike a traditional mortgage, repayment is not required until the borrower moves out, sells the home or dies.
Reverse mortgages offer some advantages for qualifying homeowners: no required monthly mortgage payments, tax-free loan proceeds and protections for heirs and surviving spouses. However, interest and fees accrue over time and are added to the loan balance, which reduces the equity remaining in the home.
To qualify for a HECM, borrowers must be at least 62, use the home as a primary residence, be current on federal debt and complete an educational session with a HUD-approved counselor. Origination fees and closing costs can be high, and borrowers remain responsible for property taxes, insurance and maintenance. Failure to keep up with those obligations can put the home at risk. Experts recommend reviewing the terms carefully and discussing the decision with family, especially if you hope to leave the property to heirs.
3. Home purchase
Buying a home in retirement is more common than many people realize. Almost half of homebuyers in 2024 were 60 or older, according to the 2025 Home Buyers and Sellers Generational Trends report from the National Association of Realtors.
Lenders evaluate retirees using the same debt-to-income ratio as other borrowers, and retirement income qualifies. Social Security is especially strong in a lender's eyes because it only increases over time with cost-of-living adjustments.
Retirees can also draw on savings to fund a purchase. A 401(k) can be liquidated without the 10% early-withdrawal penalty after age 59 1/2, though the proceeds are taxable as income. Roth IRA withdrawals are tax-free because contributions were taxed at the time of investment.
Another option, according to Experian, is borrowing from an IRA. The loan is not taxable, does not count toward the debt-to-income ratio and does not affect the borrower's credit score. The trade-off is that the loan must generally be repaid within five years, and the borrower misses out on investment gains during that period.
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4. Estate planning
For many homeowners, their house is the most valuable asset they own, but deciding how to pass it on after death is something many people delay. Without a plan, the state decides who inherits the property through intestacy laws, which may not reflect the homeowner's wishes.
The good news is that there are several established options, each with different trade-offs in cost, complexity, privacy and control. "It is a little like asking whether you should use a hammer, screwdriver, wrench or power drill," said Misty Ralston, an attorney at Ralston Law Estate Planning in Woodbury, New Jersey. "They may all be useful, but the right answer depends on what you are building."
The simplest options include a will, which directs assets through a court-supervised probate process, and a transfer-on-death deed, which lets homeowners name a beneficiary on the deed and skip probate entirely. Both are relatively inexpensive to set up. However, wills are public documents and can take months to process, while transfer-on-death deeds are not available in every state and do not allow conditions on how the home is used after death.
For homeowners with more complex situations, trusts offer greater control and privacy. A revocable living trust avoids probate, keeps the transfer private and allows detailed instructions for how the property is managed. An irrevocable trust goes further by removing the home from the owner's estate, which can protect it from creditors and support Medicaid planning. Joint tenancy is another option that transfers ownership automatically but gives the co-owner an immediate legal interest in the property. An estate-planning attorney can help determine which approach fits best.
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5. Multigenerational
Multigenerational living is a growing housing trend as families look to share costs, care for aging parents and accommodate adult children under one roof.
The number of people in multigenerational households quadrupled from 14.5 million in 1971 to 59.7 million in 2021, according to Pew Research Center. In 2024, 17% of home purchases were intended for multigenerational use, up from 11% in 2021, according to a National Association of Realtors survey. Cost savings was the top reason cited by 36% of buyers, followed by caring for aging parents at 25%.
Families have several options for creating multigenerational space. Some are buying newly constructed homes designed with features like dual primary suites, separate entrances, kitchenettes and independent climate controls. Others are retrofitting existing homes through garage conversions, finished basements, room additions or accessory dwelling units. Costs vary widely, from a few hundred dollars for splitting a room to $150 to $300 per square foot for an accessory dwelling unit. Before starting any project, families should check local zoning laws and building permit requirements.
The financial benefits of sharing a household can be significant. Splitting mortgage payments, utilities, food and maintenance lowers the per-person cost of housing and can help younger adults build savings or improve credit. Grandparents living in the home can help with childcare. But the arrangement comes with trade-offs, including reduced privacy, more housework and the potential for family conflict over finances, parenting styles and household responsibilities. Families should establish written agreements covering shared expenses, equity and contingency plans before moving in together. Consulting an attorney is recommended, particularly on how the arrangement may affect benefits such as Medicare, Medicaid and Social Security.
6. 55-plus communities
Communities for people 55 and older are a growing segment of the housing market, ranging from manufactured-home parks to master-planned developments with golf courses, fitness centers and organized social programming.
In 2025, 30,000 single-family homes were built in age-restricted communities, up from 9,000 in 2009, according to the National Association of Home Builders. The median sale price in these communities reached $523,000, which is 27% higher than the $412,000 median for non-age-restricted single-family homes. Under the Housing for Older Persons Act of 1995, at least 80% of occupied homes must have one resident who is 55 or older.
These communities are designed for independent adults who want a social, low-maintenance lifestyle. They are not assisted living or nursing homes and generally do not provide personal care services. Total monthly housing costs typically range from $1,500 to $3,500, including mortgage, homeowners association fees, property taxes and insurance, according to WealthVieu, an online site that provides personal finance information on retirement, estate planning and mortgages.
"If you're considering a 55-plus community, the decision is about much more than age — it's about whether the lifestyle matches the life you want over the next 10 to 20 years," said Stacy Miller, an agent at ReMax Fine Properties in Peoria, Arizona.
Before buying, prospective residents should review the homeowners association's financial statements, reserve fund balance and fee increase history. It is also important to plan for potential health changes, since most 55-plus communities are not equipped to provide long-term medical care. Renting first, at $1,200 to $3,500 per month in many communities, can be a practical way to test whether the lifestyle is a good fit before committing.
7. Assisted living
Assisted living is a residential option for older adults who need help with everyday tasks but do not require the round-the-clock medical care of a nursing home. The level of support is based on a resident's ability to perform six activities of daily living: bathing, continence, dressing, eating, mobility and toileting. Typical services include three meals a day, medication management, light housekeeping, transportation, social programming and 24-hour emergency response. Some communities also include memory care wings for residents with Alzheimer's disease or other forms of dementia.
Costs vary widely by state. The national average in 2026 is $5,830 per month, according to A Place For Mom, an organization that helps adult children find assisted living facilities and other housing options for parents. Washington, D.C., is the most expensive at $7,956 per month, while Alabama is the least expensive at $4,200.
Pricing models differ as well: Some communities charge an all-inclusive rate; others use an a la carte structure, and some offer tiered pricing based on the level of care required.
Medicare generally does not cover assisted living room and board, which is one of the most common misunderstandings families encounter. Medicaid may help with services in most states, but room and board remain the resident's responsibility.
Before choosing a community, prospective residents should review state licensing and inspection records, ask about staff retention rates, inquire about fee increases over the past three years and find out whether the facility offers higher levels of care if health declines. "Trust your instincts," said Christina Bremner, founder of Purple Door Finders, an online database of facilities for older adults and for assisted living facilities. "If a community feels off to you, then it probably is off."
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8. Apartments for older adults
There are rental communities designed for older adults who can live independently. They are not assisted living facilities and they are not nursing homes. Residents handle their own cooking, cleaning, medication and daily schedules.
"These are just apartments with age restrictions, and it's the landlord's duty here to keep them reasonably safe, but not to monitor a resident's health or step in if they fall behind on their meds or even wander off," said Jae Lee, managing partner of Jae Lee Law, a personal injury law firm in Fort Lee, New Jersey.
The buildings are typically designed with accessibility features such as wider doors, grab bars in bathrooms and emergency call buttons. Management handles maintenance, grounds upkeep and common-area cleaning, while residents take care of their own units.
Communities may offer gyms, meeting rooms and planned social activities, though participation is optional. Residents do not need to be retired; eligibility is based on age and the property's occupancy requirements. Costs vary by community, with some operating at market rate and others offering affordable or subsidized options.
The key difference between apartments and assisted living is services. Assisted living provides hands-on support with daily tasks like bathing, grooming and medication management. Apartments provide none of that. If a resident needs assistance with activities of daily living, they must hire outside home care, just as they would in any other home.
Apartments appeal to older adults who want to give up the burden of maintaining a house without giving up their independence. "They still want their own front door, kitchen, belongings and schedule," said Melissa Smith, a real estate adviser at Atlanta Fine Homes Sotheby's International Realty.
9. Nursing homes
Nursing homes provide the highest level of residential care available outside a hospital. They are staffed around the clock with licensed nurses and certified nursing assistants and serve older adults who require 24-hour medical supervision, skilled care such as wound management or IV therapy, or hands-on help with most activities of daily living. Some residents enter for short-term rehabilitation after a hospitalization; others move in for long-term custodial care when they can no longer live safely in any other setting.
The cost is significant. The median price of a private room is $355 per day, or $129,575 per year, according to the 2025 CareScout Cost of Care Survey from Genworth Financial. Semiprivate rooms run $315 per day, or $114,975 per year. Location is the largest cost driver, with monthly median costs for a semiprivate room ranging from $18,448 in Oregon to $7,604 in Texas.
Medicare covers only short-term rehabilitation stays, paying fully for the first 20 days after a qualifying hospital admission and partially for days 21 through 100. Medicaid is the most common payment method for long-term stays but requires limited income and assets to qualify.
Choosing a facility requires research. Robert Alden, a partner at Byrd Davis Alden & Henrichson in Austin, Texas, recommends starting with Medicare.gov's Care Compare tool, which rates every certified nursing home on a five-star scale.
"The most important metric to look at is health inspections," Alden said.
He also cautions against choosing based on price alone. "Low costs are more of a warning sign than a bargain," he said. "Cut costs often correlate with cut staffing and standards."
10. Continuing care retirement community
A continuing care retirement community, or CCRC, is a type of retirement community that provides independent living, assisted living and skilled nursing care on a single campus. Residents move in while they are healthy and transition to higher levels of care as their needs change without leaving the community.
For couples, this means one spouse can move to assisted living or memory care while the other remains in independent living, and they can still see each other daily. Services typically include meals, transportation, housekeeping, social programming and access to on-site medical support.
The cost is substantial. Most CCRCs charge an entrance fee ranging from $100,000 to more than $1 million, with an average exceeding $480,000, plus a monthly fee averaging approximately $4,246 for independent living, according to the National Investment Center for Seniors Housing & Care, a nonprofit organization that provides data, analytics and connections between investors and providers. Some communities offer a rental model with no entrance fee, averaging $3,873 per month.
Contract types vary significantly: Type A contracts include future care at predictable rates; type B covers a limited amount of care before out-of-pocket costs begin; and type C charges full market rates for any care beyond independent living. Medicare does not cover entrance fees or monthly service fees.
The most important step before signing a contract is evaluating the community's financial health, said Evan Farr, a certified elder law attorney at Farr Law Firm in Fredericksburg, Virginia. "It is whether the organization will be able to fulfill its promise of providing a continuum of care over several decades," he said. Prospective residents should review audited financial statements, check occupancy rates, understand refund policies and consult a financial adviser before committing.