- Over 65s are the fastest growing age-group becoming 'live-in landlords'.
- 48% more over 65s advertised rooms for rent in their homes in 2024 than in 2023 as retirees look for ways to make an income and find company later in life.
For cost-burdened seniors looking to boost retirement income and find companionship, renting out a room in their home is a no-brainer, which could explain why over 65s are the fastest-growing demographic becoming so-called 'live-in landlords', according to new data shared by roommate matching site SpareRoom.
While only 6% of all live-in landlords using SpareRoom are aged 65+, and 14% are aged 55-64, these two age groups are the fastest growing, as shown in the table below:
| Age group | % of live-in landlord users with rooms available in 2024 | % change 2024 vs 2023 |
|---|---|---|
| 18-24 | 5.8 | 1% |
| 25-34 | 27.8 | 5% |
| 35-44 | 26.8 | 21% |
| 45-54 | 19.1 | 27% |
| 55-64 | 14.3 | 40% |
| 65+ | 6.1 | 48% |
Source: SpareRoom.com
The number of over 65s advertising rooms for rent in their own homes increased by 48% between 2023 and 2024. Those aged 55-64 and approaching their retirement years were the second fastest-growing age group: 40% more advertised rooms in their homes for rent in 2024 compared to 2023.
While renters are more likely to be 'cost burdened' than homeowners, some 18.8 million homeowners spent more than 30% of their income on housing costs in 2023, according to the Census Bureau, partly driven by the high cost of homeowners' insurance.
The Joint Center for Housing Studies of Harvard University reports that, in 2021, less than a million (913,000) US adults aged 65+ lived exclusively with 'non relatives' or roommates - a number that has nearly doubled since 2006. And with 14.4M over 65s living alone, there's plenty of room for growth.
Homeowners with empty rooms in US city metro areas can make a very good income. The table below shows average monthly room rents in 21 of the most popular US cities on SpareRoom in Q4 2024:
| Metro area | Average monthly room rent Q4 2024 | |
|---|---|---|
| 1 | New York, NJ, NY | $1610 |
| 2 | Boston, MA, NH | $1362 |
| 3 | Los Angeles, CA | $1345 |
| 4 | San Francisco Bay Area, CA | $1332 |
| 5 | San Diego, CA | $1328 |
| 6 | Washington D.C., DC, MD, VA, WV | $1262 |
| 7 | Denver, CO | $1246 |
| 8 | Fort Lauderdale, FL | $1185 |
| 9 | Dallas, TX | $1149 |
| 10 | Austin, TX | $1097 |
| 11 | Chicago, IL, IN, WI | $1095 |
| 12 | Houston, TX | $1089 |
| 13 | Seattle, WA | $1054 |
| 14 | Orlando, FL | $1051 |
| 15 | Fort Worth, TX | $1043 |
| 16 | Tampa, FL | $1010 |
| 17 | Phoenix, AZ | $1000 |
| 18 | Raleigh, NC | $983 |
| 19 | Charlotte, NC, SC | $933 |
| 20 | Atlanta, GA | $916 |
| 21 | Las Vegas, NV | $907 |
Source: SpareRoom.com
The number of non-homeowner over 65s looking to rent a room in shared accommodation is also on the up: 55% more in 2024 than the previous year.
Matt Hutchinson, spokesperson for SpareRoom, says: “The cost of living has spiraled, hitting households hard and forcing people to explore new ways to boost their income. This has led to an increase in homeowners advertising for roommates over the past year. And, for seniors who own homes but haven't saved enough to retire comfortably, or who want the companionship and security of having someone they trust around the house, renting out a spare room is a common-sense move..
“There's some work involved in the initial administrative set up - which includes creating a written agreement and establishing house rules around guests, pets, use of facilities etc - and, of course, preparing a room for your new roommate. But the financial reward is well worth your time. As a comparison, it would take around 17 days of work at federal minimum wage to earn $1,000 per month. Plus you're contributing positively to the rental market: in many areas rented accommodation is in desperately short supply, in part due to the rise of short-term rentals, which are driving up prices.
"My advice to those sharing their homes for the first time is to read up on the state and local laws, tax rules, and responsibilities. Then, take the time to choose a roommate who you think you'll get along well with. Be really clear about your living arrangements, your schedule and your expectations when advertising a room. Do you have pets? Do you smoke? Do you mind your roommate having guests over? Would you mind living with someone who works from home, or would you prefer someone who travels a lot?”