6 of the best cities for 55+ homebuyers in 2025 and where demand is cooling
While millennials and first-time buyers receive a lot of attention in today's housing market, baby boomers and Gen Xers over 55 make up 25% of the U.S. population. The 55+ cohort is a powerful group in the housing market, and the ripple effects of where they live and retire will have massive implications for the economy.
See More: Two Cities that are Beating Slowing Sales Trends in 2025
While many in the 55+ bracket will choose to stay in the homes they own or rent, others may consider relocating to a different metro or state, moving locally, moving into a multi-generational house, moving into assisted living, or moving into an age-restricted community.
See More: 7 Differences Between What Millennials and Boomers Look for in a HomeAge-restricted communities, also known as age-qualified, active adult, or 55+, require buyers to be 55 or older to purchase. The active adult category is on the rise, and many of the largest home builders in the country are meeting growing demand in markets across the country, NewHomeSource, a new home listings site with customer reviews, reports.See More: The 2025 Housing Market: What it Means For New Home Buyers
"If you are nearing retirement, or simply over the age of 55 and looking for a lower-maintenance, lifestyle-oriented community, you are not alone and builders are noticing," says Ali Wolf, chief economist for NewHomeSource. "An active adult community isn't for everyone, but if you want to live somewhere with like-minded folks, lifestyle-related activities, and age-relevant design, these kinds of communities might surprise."
By analyzing Zonda data from January 2025 and using January 2019 data as comparison, the economics team identified the areas leading the charge in active adult community development. These markets have the most 55+ choices and options for potential buyers across price points, amenities, and location. The fastest-growing markets include:
Atlanta: This market has added 19 new 55+ communities since 2019, bringing its total to 43 and establishing it as a hub for active adult living in the Southeast. Atlanta's location offers a busy city environment with a sense of Southern charm, a diverse culinary scene, proximity to an international airport for busy travelers, and a relatively lower cost of living than other major cities.Jacksonville, Port St. Lucie, and Sarasota: These three markets have added 14, 11, and 11 55+ communities since 2019, respectively. Each offers the classic sunshine and savings Florida recipe for residents as well as retirement-friendly tax structures, and beach access.Raleigh: The North Carolina market is a popular migration destination for individuals of all ages, but has not traditionally been considered a retirement hub. However, with today's 55+ buyers prioritizing factors such as walkability, affordability, and proximity to millennial children, Raleigh ticks each of those boxes. The metro has added seven 55+ communities since 2019.Denver: Similarly to Raleigh, Denver is not the first place named as a retirement destination, but it offers many of the features 55+ buyers highly value. Denver's location near the Rocky Mountains and numerous parks and trails provides ample opportunities for outdoor recreation. The city also offers relative affordability and a robust arts and culture scene.Sacramento: The capital city in California has seen notable growth in the past six years, adding 10 55+ communities. The 19 55+ communities in Sacramento are the most of any West Coast market outside of Phoenix. The city's favorable climate and relative affordability compared to other California markets are benefits that may resonate with 55+ buyers.
Not all markets are expanding their 55+ offerings, with several major markets experiencing declines since 2019:
New York (-28) and Los Angeles/Orange County (-12): The major East and West Coast metros have seen the biggest pullbacks. The large and expensive markets may see tougher 55+ buyer competition and development might be stunted by limited land supply or home builders shifting focus away from 55+ communities based on local market dynamics.Cape Coral (-11), Phoenix (-7), and Tampa (-7): While these three markets have traditionally been popular retirement destinations, demand has cooled slightly since 2019. The pullback could also reflect local land constraints or builders shifting focus to other consumer segments in the market.
The newer active adult communities in markets such as Atlanta, Jacksonville, Sacramento, and Raleigh may offer buyers more competitive pricing, newer designs and layouts, and updated amenities. Meanwhile, while Phoenix and south Florida remain strong options for the 55+ buyer, tightening supply makes it more important for buyers to research options to find the right fit.
This story was produced by NewHomeSource and reviewed and distributed by Stacker.
© Stacker Media, LLC.
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