Baby boomers, it’s your world—everyone else is just renting. Literally. While millennials and Gen Z are out there battling bidding wars and skyrocketing rents, you hold the golden ticket: 38% of U.S. real estate, despite being just a quarter of the population. Talk about making your equity work overtime!
Here’s the kicker: About half of all boomers own their homes outright. No mortgage payments, no problem. And with home equity hitting a jaw-dropping 72.7% of total real estate value in mid-2024 (highest since 1958), you might be wondering—should you turn that nest egg into a golden parachute?
Sell or Stay: The Great Boomer Debate
Forty years ago, the average life expectancy was 73. Today, it’s 77. That’s four extra years of vacations, hobbies, and, yes, expenses. So, the question isn’t just if you should sell—it’s whether your current home fits your life and financial goals.
“If your house feels more like a museum of unused rooms than a cozy sanctuary, downsizing might be the ticket to less stress and more freedom,” says Angelica Ferguson VonDrak, an associate broker with Sotheby’s International Realty.
Downsizing doesn’t just free up physical space; it liberates your time and your budget. With skyrocketing property values, many boomers stand to pocket a significant profit that could fund retirement, pay for that dream RV, or let you finally say, “Yes, I’ll take the extended wine tour in Tuscany.”
But staying put isn’t off the table. Love your home? Consider a home equity loan or line of credit to leverage your biggest asset without packing a single box.
The Safety Factor
Safety and convenience are big players in the downsizing conversation. Slipping on ice, keeping up with a giant yard, or climbing stairs daily? It’s not exactly retirement goals.
“Boomers in South Florida are downsizing all the time,” says Jeff Lichtenstein of Echo Fine Properties. “They want to be closer to family, in a safer environment, and eliminate unnecessary hazards.”
But here’s the plot twist: Downsizing doesn’t have to mean moving. A growing trend among boomers is modifying their homes to age in place. Think grab bars, ramps, and hiring help for those pesky chores.
Dip Your Toes Into Downsizing
Still not sure? Why not test the waters with a short-term rental?
“Try renting part-time to explore downsizing without fully committing,” suggests Andrew Latham of Supermoney.com. “You can even rent out part of your current home for extra cash while you’re at it. It’s like having your cake and eating it too.”
This hybrid approach lets you keep options open while experimenting with new locations—or finally spending a winter in that dreamy beach town.
Why Boomers Hold All the Cards
Let’s rewind to when you bought your first home. Sure, interest rates were eye-wateringly high (hello, 13.74% in the ’80s), but home prices? A cool $73,400 on average. Adjusted for inflation, that’s about $298,000—still leagues below today’s $424,950 median price.
Translation? You built equity like pros, and now it’s paying off big time.
So, What’s the Move?
More than half of boomers aren’t planning to sell anytime soon, according to a 2024 Clever Real Estate survey. And with interest rates hovering just under 7%, who can blame them?
But if you’re tempted to cash out while it’s still a seller’s market, consider this: Downsizing isn’t always cheaper these days, thanks to rising costs per square foot. That dream of pocketing a million bucks and snapping up a cozier spot for peanuts? It’s still doable—just take your time to weigh your options.
The Bottom Line
Selling or staying is a deeply personal decision. Think about your lifestyle, safety, and financial goals. Whether you’re dreaming of a smaller space, a new adventure, or just staying put with fewer worries, the choice should align with the life you envision now.
Kelly Corsino is a Senior Real Estate Specialist who lives in Long Beach, CA, with her fur baby GG The Wonderdog.
