Retirement communities are practically the only way to keep older people here in NJ now; I believe they do have lower taxes, but most retirees own homes outside of them. If they have to sell them anyway, why stay in NJ at that point? Many are now going to the southwest instead of the more traditional Florida route...
I think it usually comes down to wanting to stay near family. Retirees with grand kids like to be close to them.
I think the only way to really keep county and state level governments from using property taxes to club seniors to death is for the property to have a low assessed value. Unfortunately, the county tax assessor controls that valuation in most places.
One of the smartest things California ever did was pass Prop 13 back in the 70’s. That locks in property taxes based on the purchase price plus inflation even if that was 50 years ago and even if property values all around you have skyrocketed. I don’t know if it holds true if the property is purchased at a discount to the general market, though. And it isn’t ideal, because it creates a housing shortage in urban neighborhoods where young people are trying to be close to work, and shortages drive up costs.
I’d rather see gated retirement communities out in the countryside exempt from property taxes that are apportioned for schools and police. Then don’t build any schools in the area. Even to the point of building these retirement communities on Federal lands and removed from the county tax rolls entirely.