By Caroline Andrews
For many homeowners approaching retirement, the idea of selling the family home comes with both excitement and hesitation. But once the decision to downsize is made, the next question often arises: should I buy again, or consider renting?
Traditionally, homeownership was seen as the ultimate financial achievement and a sign of security. But for today’s retirees, that narrative is shifting. Renting in retirement can be a smart, strategic choice—not a step backward. It all depends on your goals, lifestyle and priorities in this new chapter.
The Case for Renting
- Freeing Up Equity
Selling a mortgage-free or high-equity home can unlock a significant amount of capital. Renting allows you to access that equity to fund travel, support family, invest or simply enjoy more financial flexibility without tying up your money in another property. For some, this is the first time in decades they have such easy access to liquid assets, which can be liberating. - Less Responsibility, More Freedom
Renting means no more snow removal, roof repairs or maintenance schedules. In a well-managed building, those worries are left to someone else—giving you back your time and peace of mind. For retirees who want to enjoy their days rather than coordinate service calls, this shift can significantly improve quality of life. - Flexibility to Pivot
Want to try city living for a year? Thinking about being closer to your children or grandkids for a season? Renting gives you the freedom to adjust your location and lifestyle without the long-term commitment of owning. For snowbirds, seasonal renters or those exploring new places, this flexibility is a key advantage. - Predictable Monthly Costs
In many cases, rent includes some or all utilities and maintenance. This can simplify budgeting in retirement, especially when income is fixed or based on savings and pensions. Knowing exactly what to expect each month can reduce financial stress and help with long-term planning. - Downsizing Without Compromise
Modern rentals, particularly those designed for 55+ living, often offer features and amenities that match or even exceed what homeowners are used to—from walk-in showers to full social calendars. It’s possible to downsize your space without downsizing your lifestyle.
The Case for Buying
- Long-Term Stability
Owning still provides a level of control that renting can’t. You won’t be subject to rent increases, lease changes or the risk of having to move unexpectedly if your landlord sells. For those who value stability and security, owning can bring significant peace of mind. - Leaving a Legacy
For those who wish to pass down wealth to the next generation, owned real estate remains a tangible asset that can be inherited or leveraged. Property continues to be a cornerstone of many family financial strategies. - Emotional Connection
There’s a unique pride and comfort in owning your own space. Some people simply feel more at ease knowing their home is truly theirs. Ownership can provide a deep sense of permanence and place that renting may not offer. - Market Appreciation
Depending on location and market conditions, buying a smaller home or condo may still offer future value growth. Especially in high-demand areas, real estate remains a solid long-term investment for many retirees. - Customization and Control
When you own your home, you can make design choices, install upgrades and renovate as you see fit. That level of control can be appealing if you want your living space to reflect your personal tastes and evolving needs.
Questions to Ask Yourself
- Do I want the flexibility to move again in a few years?
- Is preserving or growing my wealth important at this stage?
- Am I ready to let go of homeownership responsibilities?
- Do I prefer a fixed monthly expense or the potential variability of ownership costs?
- What kind of lifestyle do I want in the next five to10 years?
- Would I feel more at home in a tight-knit rental community or in a place that I own and can shape?
- Am I emotionally ready to part with homeownership or does it still feel tied to my sense of independence?
The Rise of Luxury Rentals and Active-Living Communities
The Ottawa region has seen an increase in upscale rental offerings designed specifically for downsizers and retirees. These residences offer high-end finishes, concierge services, social amenities and flexible leasing options. For many, it’s a way to maintain a luxury lifestyle without the strings of ownership. Some buildings even offer wellness programming, dining packages and housekeeping, adding a layer of comfort and support.
Active-living communities are also gaining popularity. These environments blend independence with convenience—offering social events, wellness facilities and a built-in sense of community that can ease the transition from a long-time home. They’re ideal for those who value connection, activity and an easy-to-maintain living environment. Many offer on-site fitness classes, libraries and group outings, creating a vibrant and engaging atmosphere.
The Bottom Line
There is no one-size-fits-all answer. Renting isn’t a step back—for many, it’s a thoughtful leap forward. It all comes down to what matters most to you at this point in your life. Whether you value flexibility, simplicity, legacy or control, the right decision is the one that best supports your well-being and lifestyle goals as you move into this exciting new chapter.
This is a personal topic for many of my clients and I hope this helps you feel more confident in your next step!
Caroline Andrews is a real estate advisor with Engel &
Völkers Ottawa, a seniors real estate specialist (SRES®)
and an interior design consultant.
