55+ Community: What It Means and What to Check Before You Buy

A 55+ community only needs 80% of its homes to have someone 55 or older living there. That surprises a lot of people, and it’s a good example of why the label doesn’t tell you everything. If you’re thinking about right-sizing, here’s what a 55+ community actually means and what to check before you buy.

Front porch of a home; what to check in a 55+ community

What makes a 55+ community legal

Federal fair housing law generally bans discrimination based on familial status, which includes households with children. Housing for older persons is an exception. Under the Housing for Older Persons Act, a community can operate as 55-and-older housing if:

at least 80% of its occupied units have at least one resident who is 55 or older,
it publishes and follows policies that show it intends to be housing for people 55 and older, and
it verifies residents’ ages under HUD’s rules.

You can read the details in 24 CFR 100.305 and on HUD’s HOPA guidance.

Three things to check before you buy in a 55+ community

1. The community’s own rules

Many communities are stricter than the law. Their rules may cover who else can live in the home, how long guests can stay, rentals, and exterior changes. Get the declaration, bylaws and rules in writing during your due diligence period, while you can still walk away.

2. What the HOA dues cover

Some dues cover lawn care, exterior maintenance, a clubhouse and activities. Others cover much less. Compare the dues to what you spend now on yard work, repairs and memberships. A higher fee that replaces three bills can be a good deal; a high fee for amenities you won’t use isn’t.

3. Whether the house fits the next 15 years

Buy for the next 15 years, not just the next one. Look for a first-floor primary bedroom, few or no steps at the entry, wide doorways and a shower you can walk into. Your knees will thank you. Mine send a thank-you note every morning.

A 55+ community isn’t the only right-sizing option

Single-story homes and townhomes with a first-floor primary are available in many neighborhoods with no age requirement at all. Some people prefer to rent for a while first. My guide on selling your house and renting in retirement walks through that choice, and the best time to sell in Cary can help you plan the timing.

Start with your current home

Most right-sizing moves start with one question: what will my current home sell for? That number shapes what you can buy next and how much you’ll keep. Pair it with the costs in my cost-to-sell guide and you’ll know your real budget.

Find out what your home is worth

Get my free broker’s opinion of value from First Flight Realty, based on actual recent sales near you, not a Zestimate. Then we can talk through which right-sizing option fits.

General information, not legal, tax or lending advice. A broker’s opinion of value is not an appraisal.

Keep learning with the Professor

Mike Hall, The Triangle Real Estate Professor, is a broker with First Flight Realty in Cary, NC, and an NCREC-approved real estate instructor.

What a 55+ Community Actually Means (and What to Check Before You Buy)