Foreclosures? Not in 55+ Communities

While there is no doubt that this is a buyers’ market, and home prices are significantly lower, many active adult communities have not been hit as hard as other neighborhoods.
While there is no doubt that this is a buyers’ market, and home prices are significantly lower, many active adult communities have not been hit as hard as other neighborhoods.

Given the current housing market, potential homebuyers might expect to find savings on their dream retirement homes. While there is no doubt that this is a buyer’s market, and home prices are significantly lower, many active adult communities have not been hit as hard as other neighborhoods. Foreclosures are few and far between, and many would-be homebuyers are wondering why. 

Phoenix Case Study

The city of Phoenix, which was home to the country’s first active adult community, is a good example of an area where active adult communities have weathered the housing downturn far better than their surrounding neighbors. As discussed in this Fortune Magazine article, there are many theories behind this trend. The most common reasons involve the differences in the ways older adults approach home buying.

Retirees, or soon-to-be retirees, tend to put more money down when buying their retirement homes. These larger down payments have given current active adult community residents more equity in their homes and lower monthly payments. This has helped to keep many homeowners from finding themselves “upside down” on their mortgages, if they have mortgages at all. A surprising number of retirees, including a reported 61 percent of the residents in Phoenix’s original Sun City community, own their homes outright.

In most cases, those who do have mortgages were experienced enough to avoid the risky variable-rate loans that were the downfall of many homebuyers. Instead, they chose fixed-rate mortgages and were careful to not borrow more than they could afford to pay back.

Final Move

Homes in active adult communities have also held their values relatively well because residents are often not worried about moving again. For residents who plan to stay in their homes for the rest of their lives, affordable monthly payments become more important than the home’s total worth.

Active adults who purchased their homes before the housing bubble find that their home values have simply returned to what they were when they moved in. Those who purchased homes at the height of the market are likely to have lost money on their investments, but in many cases, substantial down payments have protected them from the threat of foreclosure.

Turnover Rates

As the housing market begins to stabilize, homeowners who weathered the storm may be rewarded by rising home values. Some real estate professionals expect that the homes in active adult communities will rebound faster than in other communities because they offer additional amenities that appeal to homebuyers. And, with more active adults retiring every day, the demand for homes in active adult communities is likely to increase.

While foreclosures are harder to find in active adult communities, home prices have been drastically reduced in communities throughout the country. This means that the current market is a great time for potential buyers to look for homes in active adult communities

Can you spot the $207,744 difference between these identical homes?

Financing is the difference!

Get the details in The 62+ Loan Homebuyers Guide.

55places Mortgage is a joint venture between Mutual of Omaha Mortgage and
Details here.

Share this post:

We're here to help! (800) 928-2055

Call us to speak with a customer service representative.

Subscribe to Our Newsletter

Get Weekly Updates

I agree that 55places and its affiliates, partner providers or agents may call, text, or email me about my inquiry, which may be made with automated means. I understand that my consent is not a prerequisite for buying a property. I may revoke my consent at any time by contacting [email protected] Message/data rates may apply. I also agree to’s Privacy Policy and Terms of Use.

The Best Places to Snowbird in 2021

We’ve gathered 25 of the best places for snowbirds, including cities in Florida, Arizona, California, Texas, South Carolina, and Nevada. For each entry, we’ve also provided a list of recommended 55+ communities in the area. If you’re ready to find your own winter retreat this season, here are some of the best places to consider.

A senior couple takes a hike in a low-humidity state they chose for their retirement.

Retirement: What Are the Top 5 States With the Lowest Humidity?

There are many factors in deciding where to retire, and the weather can be one of them. Luckily, many of the states with nice weather also offer additional benefits for people over 60 and have several exciting active adult communities. Here are the four best states for a low-humidity retirement.

Lake view during autumn at dusk of Table Rock Mountain in Pickens, South Carolina.

5 Reasons To Consider a South Carolina Retirement

What does South Carolina have to offer active adults? A selection of over 80 active adult communities is just the beginning. These five reasons to consider a South Carolina retirement just might convince you that this southern coastal state has everything you’re looking for in a 55+ community.

The Best Places to Retire in South Carolina

South Carolina is known for having some of the best golf courses in the country, but that’s not all it has to offer active adults. The state has a rich history and culture, a wide selection of entertainment and recreation, and miles of beaches and coastal living.

North Carolina vs. South Carolina

The Carolinas are a power couple when it comes to maintaining an active lifestyle in an amazing climate, but they’re separated by more than just a border. A side-by-side comparison of the two can quickly show which is better for you when it comes to your interests and needs.

Exterior view of a model home at Del Webb Carolina Gardens, Fuquay-Varina, North Carolina on a sunny day.

55+ Communities With New Homes for Sale Near Raleigh

If you’re in the market for a new construction home in Raleigh, North Carolina there are plenty of options to consider. We’ve put together a list to help you start your search for the perfect neighborhood with new homes.

A woman playing pickleball in her 55+ community.

Raleigh Area 55+ Communities Big on Pickleball

With the pickleball’s rising popularity, many active adult communities across the country have taken heed and added pickleball courts to their lists of amenities. And, the Raleigh-Durham area–which is home to 40 active adult communities–is no different.

About 55places

We’re changing the way people 55 and older are searching for their perfect next place. With a national network of hand-selected real estate experts, plus comprehensive information, unbiased content, and on-the-go insight about thousands of communities across the country, we’re a trusted resource paving the way from here to home. Whether you’re interested in a low-maintenance single-level residence, an active lifestyle or age-qualified community, an intimate enclave, or anything in between, we can help you make your next move the best one yet.

Scroll to Top