Housing decisions near retirement turn on different things than at 30. The time horizon is shorter, income is often fixed, and a home may be your largest asset. Here's how to think it through.
If you already own
Owning outright lowers your monthly costs, but not to zero. Property tax, insurance, and maintenance continue. The 5% rule estimates maintenance at roughly 1% of a home's value a year, and older homes often need more: roofs, systems, accessibility changes.
Your equity is real money, but it's tied up. Selling and renting turns a home into cash you can invest or spend, at the cost of losing control over future rent increases. Staying keeps your housing cost predictable, as long as taxes and upkeep stay manageable.
Ask whether the house still fits. Stairs, yard work, and distance from family and health care matter more each year. Downsizing within the same area can cut costs and free equity.
If you're thinking of buying
A mortgage in retirement is a fixed bill on a fixed income. At 7.40% rates, borrowing is expensive. Buying with cash avoids that but ties up savings.
The horizon is shorter. Buying and selling costs are spread over fewer years, and your plans may change with health or family. Renting keeps flexibility.
Rents can rise. That's the main risk of renting long-term. Over 2019–2024, median rent rose 35% in the typical big US city; see rent growth since 2019. Rents have cooled since, but over a long retirement, owning protects against increases a renter would face.
Questions to answer
- What does it cost to stay? Add property tax, insurance, HOA fees, and 1–2% of the home's value for upkeep.
- What would renting cost nearby? Check your city's rent forecast.
- How long do you expect to live here? Five-plus years favors owning; uncertainty favors renting.
- Do you need the equity for income? If so, selling or downsizing may be the plan.
The middle options
- Downsize to a smaller home or condo in the same area.
- Move to a cheaper city. Home values in big US cities range from under $100,000 (Detroit) to over $1.7 million (Sunnyvale, CA); see where home values nearly doubled since 2019.
- Sell and rent for flexibility, then invest the proceeds.
This is general information, not financial advice; a fee-only planner can model your own numbers. To see where values and rents are heading in a specific ZIP code, use Predictye Property and Predictye Rent.
Sources
- Ben Felix, PWL Capital (2019), the 5% rule (about 1% of home value a year for maintenance).
- U.S. Census Bureau, American Community Survey 1-year, 2019 and 2024.
- Freddie Mac Primary Mortgage Market Survey via FRED: 7.40% for the week of October 15, 2026.
Don't guess. Just Predictye.