During the past decade, however, that narrative has fallen by the wayside for many. More than 6 million Americans age 65 and older are carrying a mortgage, according to a study by the Census Bureau. Some remain "underwater" on their mortgages--that is, their loan principal is more than what their home is worth. Or they simply are not able to pay off their mortgage because of a mountain of other bills or career setbacks. They may even have college loans they're still making payments on.For many, the "debt-free" retirement seems much more difficult to achieve. And that has led some to consider selling their primary residence and renting as a viable alternative. Indeed, changing economics and a growing flexibility in housing choices has made renting a more likely choice for many retirees. Is it the right choice for you?The Economic Argument for RentingThe stark reality is that despite a housing bust in 2007-08 and low inflation since, homeownership today is expensive. The average monthly U.S. mortgage payment as a percentage of income hit a seven-year high earlier this year according to Zillow, the real estate Web site. The average homeowner pays $758 a month (as of the end of 2016), up from $690 in 2015.That has pushed even more Americans with falling or static incomes into renting. In a survey of renters aged 55 to 65, Credit Sesame, a debt management company, found that 51% of those surveyed rent because they cannot afford to buy where they live. Of those surveyed who can afford to buy, more than one-third nevertheless chose to rent due to the costs of home ownership (including not just mortgage but also upkeep and taxes), or the flexibility that renting affords. The most surprising finding from the Credit Sesame study, however, is that nearly half of those polled simply couldn't afford to buy a home due to paltry retirement income."About half of seniors rely on Social Security as their main source of income," the Credit Sesame study noted. "The average Social Security monthly payment is just $1,360, and if a person budgets the recommended 30% for housing expenses, that's a paltry $408 per month. That won't buy much even in a great housing market."Renting Means FlexibilityOne upside to choosing renting over buying: You can move to a number of places without the financial anxiety of selling or the prospect of not being able to sell for more than your purchase price. That opens up a number of possibilities for seniors. You don't have to worry whether you'll make money when you sell--that is, if you can recoup your investment minus a raft of closing expenses plus a broker's commission.Renting can open other doors, too. For instance, if you're willing to rent, you may be able to live in an expensive coastal area, where home prices are sky-high. Although rents are rarely bargains in premium areas, for most who can't afford million-dollar-plus properties, renting is still much more affordable.Or you may be able to move overseas to "try out" a country before you commit to living there. You could sample several locales as a renter. Thousands of retirees are relocating overseas to enjoy a higher standard of living, a hospitable climate, a low-stress lifestyle, and lower housing costs. Countries like Mexico, Ecuador, Colombia, and Malaysia regularly top the list of International Living magazine's annual "World's Best Places to Retire" list. The magazine also compiles a "retirement living index" that rates nations on things like lifestyle, healthcare, climate, and cost of living.Where Renting Makes the Most SenseIt's not difficult to tell where renting is a smarter choice, financially. Any search of real estate sites will give you a pretty good idea. Housing affordability, of course, is a prime factor, although taxes and local services are also part of the picture.In terms of local living costs, a recent survey by WalletHub found that six of the 10 "worst places to retire" were in high-priced California. The least expensive locales were in places like Laredo, Texas, and Orlando, Tampa, and Miami. The survey "compared the 150 largest U.S. cities across 40 key measures of affordability, quality of life, health care and availability of recreational activities."With housing, however, everything is relative. It wouldn't be fair to compare Akron, Ohio, with any coastal city in the Northeast or West. But you do need some benchmarks. Laredo, Texas, for example, "has the lowest adjusted cost-of-living index for retirees (76.93),which is 2.6 times lower than in New York, the city with the highest at196.26," WalletHub found.As with any relocation decision in retirement, you'll need to look at a wide range of expenses. Does the area have adequate healthcare services? What about long-term care services such as home and assisted living? Amenities like cultural institutions such as colleges, museums, and the arts are also important. You have to consider the big picture in living somewhere new--and what it costs--before you make a move.How to Gauge Your Rental ProfileWhen you're deciding whether to rent or buy, the first question is whether you want to be bothered with the expense and responsibility of homeownership. When you buy a house, there are local property taxes, maintenance expenses, and financing, unless you're paying cash. You also need some idea of how much your property will appreciate."It makes sense to buy in areas where your total monthly mortgage plushomeowner assessments and tax is less than the rent paid," said Hanson So with Credit Sesame."In high-growth metropolitan areas like New York, the San Francisco Bay Area, and other major cities, I find this is never the case, and it seems that monthly costs of owning a homearehigher than paying rent. That's why it's not automatically intuitive that it's best to own a home."Your time horizon is also important in the rent versus buy decision. You may want to spend a finite amount of time in an area, especially if you're not committed to the locale or just sampling."It makes sense to rent if you have a short-term three- to five-year horizon, but if you are committed to a 10-plus year horizon, then buying would likely be the better option in many cases," So adds.No matter which route you choose, you'll need to vet your finances and credit. How much rent can you afford? How solid is your credit record? Like banks, landlords may scrutinize your ability to pay rent on time.You'll also want to choose a rental unit with your needs in mind. Do you need an elevator or first-floor unit? Is the location close to shopping, healthcare, work, and amenities? Is the neighborhood safe? Is the landlord responsive to maintenance concerns? While many of these variables won't be known unless you live in a unit for a while, it doesn't hurt to ask local renters. Don't be afraid to knock on doors to find out.It also makes sense to pull your credit report and see if there are blotches on your credit rating. The higher your FICO number, the better your chances for obtaining credit--and being offered a lease (or low finance rates if buying). For a free copy of your credit report, click here. John F. Wasik is a freelance columnist for Morningstar.com and author of 16 books, including Lightning Strikes: Timeless Lessons in Creativity from the Life and Work of Nikola Tesla.The views expressed in this article do not necessarily reflect the views of Morningstar.com.

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Renting in Retirement May Be a Good Idea After All - Morningstar.com