The Average Middle-Class Retirement Budget at 75 for Renters vs. Homeowners

By age 75, renters and homeowners can have very different housing costs, which can change how much they need each month in retirement.

Here's how the average middle-class retirement budget compares for renters, mortgage-free homeowners and homeowners who are still making mortgage payments.

How Much Does the Average 75-Year-Old Household Spend?

To estimate the average retirement budget for renters and homeowners at age 75, it helps to know what older households spend overall .

Households led by someone age 75 or older spent an average of $55,834 in 2024 or $4,653 per month. Housing accounted for $21,999 of the yearly total, according to the Census Bureau . Once the average housing expense is removed, spending on everything else, including food, healthcare and transportation, comes to about $2,820 per month.

BLS doesn't break down total budgets for 75-year-old renters and homeowners. However, combining BLS spending data with Census housing costs provides reasonable monthly estimates for each group as follows.

In 2024, another Census report found median renter paid $1,487 per month for rent and utilities. Add that to the estimated $2,820 in other expenses and a renter's monthly budget comes to $4,307.

While renters usually aren't responsible for repairs like homeowners are, that doesn't mean their housing costs will stay the same throughout retirement.

For example, in 2005, per the Census, the median renter paid $728 per month for rent and utilities. That equals $1,176 in 2024 dollars. By 2024, the median had climbed to $1,487, an inflation-adjusted increase of $311 per month.

Just because someone can afford their rent payment at 75 doesn't mean they still will be able to in the future. This is especially true if retirement income doesn't rise at the same rate.

How Much Do Homeowners Without a Mortgage Need?

A homeowner without a mortgage had median housing costs of $664 per month in 2024, including property taxes, insurance, utilities and applicable fees. Using the same $2,820 estimate for other expenses, a mortgage-free homeowner would need about $3,484 per month. That's $823 less per month than what renters would need.

Unlike renters, homeowners have to budget for maintenance and repairs, like repainting their home or replacing its HVAC system. Also, property taxes and insurance can increase over time.

How Much Do Homeowners With a Mortgage Need?

Homeowners with mortgages had median monthly housing costs of $2,035 in 2024, including mortgage payments, property taxes, insurance, utilities and other fees, per the Census. Their estimated monthly budget would come to about $4,855 before maintenance and repairs. That's $548 more than the renter budget and $1,371 more than a homeowner without a mortgage.