The Five Kinds of Retirement Community, and Who Each One Is For

"Retirement community" covers everything from a golf-course subdivision to a licensed care facility. The types differ in what you own, what you pay, what care is included, and what happens if the operator fails. Sorting them out is the first step in comparing any of them to a regular neighborhood.

1. 55+ active-adult communities

What it is. A residential development, often large, where at least one resident per household must be 55 or older under the federal Housing for Older Persons Act (at least 80% of units must meet the rule). You buy the home; an HOA runs the amenities and enforces the rules. Many have club fees on top of HOA dues, and some sit inside a community development district (CDD) whose bond debt appears on the property tax bill.

Care. None. It's a neighborhood with rules and a pool.

Exposure. Rising HOA and club fees, special assessments, CDD debt, and resale limited to age-qualified buyers.

For. Active people in their 50s to 70s who want built-in social life and low exterior maintenance, and who plan separately for care.

2. Continuing care retirement communities (CCRCs, or life plan communities)

What it is. A campus with independent living, assisted living, memory care, and skilled nursing, under one contract. Most charge a large entrance fee (often several hundred thousand dollars) plus monthly fees. You usually don't own real estate; you buy a contract.

Care. The defining feature: you move through levels of care on site as needs change, with the financial terms set by the contract type (see our CCRC contract article).

Exposure. The entrance fee's refund terms, the operator's financial health, and rising monthly fees. State regulation varies widely.

For. People in their 70s and up, or couples with different health trajectories, who want the care question settled and can afford the entry.

3. Independent living (rental)

What it is. An apartment or cottage community for older adults, rented month to month, typically with meals, housekeeping, transportation, and activities bundled into rent.

Care. Light services, not medical care, though many are attached to assisted living.

Exposure. Rent increases, and moving again if care needs rise beyond what's offered.

For. People who want services without an entrance fee or ownership, and who value flexibility.

4. Assisted living and memory care

What it is. Licensed residential care for people who need help with daily activities. Paid monthly, private pay in most cases, with rates that vary sharply by county and by level of care. Medicare doesn't cover it; Medicaid does in some states through waivers, with limited slots.

Care. Personal care, medication management, meals, and in memory care, secured settings and specialized staff.

Exposure. Costs that rise with care level, and quality that varies; state licensing and inspection reports are public.

For. People who need daily help now. Often the second or third move in a retirement, and worth locating near family.

5. Co-housing, NORCs, and villages

What it is. Smaller and less formal. Senior co-housing is resident-designed and resident-run, with private homes and shared spaces. A NORC (naturally occurring retirement community) is an ordinary neighborhood or building that's aged in place, sometimes with organized services. A "village" is a membership network that arranges services and social life for people staying in their own homes.

Care. None built in, but strong mutual support and organized access to local services.

Exposure. Depends on the group; co-housing has HOA-like costs, villages charge annual dues.

For. People who want community without leaving a regular neighborhood or paying institutional prices.

What's common to all of them

Every type sits inside a county, and the county still sets property tax, insurance, the Medicare market, and hospital access. The community layer adds fees and rules on top. Compare the county first, then the community.

The bottom line

The five types answer different questions: social life, care, services, daily help, or mutual support. Decide which question you're asking, then compare communities of that type in the counties you're considering.

Estimate what selling and buying in another county frees up →

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Educational information, not financial or medical advice.