Key takeaways:
- Plan ahead for how you’ll pay for a home in retirement and what fits comfortably within your long-term budget.
- Focus on finding a home and location that support your lifestyle, accessibility needs, and future comfort.
- Consider how homeownership fits into your broader retirement plans, including taxes, maintenance, and estate planning.
Buying a house in retirement can offer stability, comfort, and a lifestyle that better fits your long-term plans, whether you picture a quiet home in Scottsdale, AZ or a coastal condo in Charleston, SC. For some retirees, owning a home provides a sense of permanence and the freedom to personalize their space. However, the right choice depends on your financial situation, how long you plan to stay in the home, and what type of lifestyle you want in retirement. Understanding the pros and cons of buying a house in retirement can help you decide if homeownership is the right move.
1. Plan how you’ll pay for a home in retirement
Before you start looking at homes, take time to understand your retirement home budget and how a new place fits into your long-term lifestyle. A little financial planning for a retirement home can help you feel confident about daily comfort, monthly cash flow, and how long you plan to stay in the home.
To explore different scenarios, you can use online tools to get a general idea of what may feel comfortable for you. Redfin offers a Home Affordability Calculator to estimate how much home might fit your budget and a Mortgage Payment Calculator to see how different down payments or loan terms could affect a monthly payment. These tools can help you compare options and begin thinking about what feels manageable in retirement.
Can you get a mortgage in retirement?
You may be wondering if you can get a mortgage in retirement, and the answer is yes. Lenders may consider retirement income sources when approving a mortgage in retirement, such as savings, pensions, or Social Security. From there, decide whether paying cash vs. a mortgage in retirement aligns better with your needs. Paying cash can offer simplicity and peace of mind, while financing a house after retirement may let you keep funds accessible for hobbies, travel, or future plans. The right approach depends on what provides the most comfort, flexibility, and security for your retirement lifestyle.
Pros and cons: Paying cash vs. financing in retirement
Paying cash in retirement
Pros:
- No monthly mortgage payments to manage
- Can offer peace of mind and a sense of security
- Simplifies the homebuying process and closing timeline
Cons:
- Ties up a large portion of your savings at once
- Less flexibility if you want funds available for travel, hobbies, or future needs
- May limit options for other retirement lifestyle goals
Financing a home after retirement
Pros:
- Keeps more of your savings accessible for lifestyle priorities
- Provides flexibility to invest, travel, or handle future expenses
- Can allow you to buy the home that best fits your long-term needs
Cons:
- Monthly mortgage payments become part of your retirement budget
- Requires approval and documentation of retirement income
- May feel less simple or stress-free compared to owning outright
2. Choose the right home and location for your retirement lifestyle
When buying a house in retirement, think about the type of home and location that will support your comfort, routine, and future needs. Many people begin downsizing for retirement to make life more comfortable and manageable. They often search for the best homes for retirement living, like low-maintenance condos, single-story homes, or 55+ communities with amenities and social connection.
From there, consider where you want to live. Some retirees prioritize retiring in warm weather or a strong sense of community, while others prefer retiring near family for support and connection. Look for areas that make daily life enjoyable.
What to look for in a retirement location
Home features
- Low-maintenance living (condo, townhouse, or single-story home)
- Right-sized layout that fits your daily needs
- 55+ or active adult community options
Location & lifestyle
- Near family, healthcare, recreation, and community activities
- Walkable community with parks, shops, and everyday essentials close by
- Social opportunities that support hobbies, connection, and long-term comfort
3. Think long-term: Aging-in-place features and accessibility
When buying a home in retirement, consider whether it will remain comfortable and practical as your needs change. Look for features that support aging in place and make daily living easier:
Home accessibility features to consider:
- Single-floor living or main-level bedroom and bathroom
- Easy-entry home with minimal or no steps
- Wide doorways and hallways
- Walk-in shower with space for seating
- Lever-style door handles and faucets
- Good lighting and non-slip flooring
- Laundry on the main level
- Space for future accessibility additions (grab bars, ramps, etc.)
4. Tax, estate, and planning considerations
When buying a home in retirement, it’s important to think about how your property fits into your broader financial and estate plans. Owning a home can influence everything from long-term budgeting to how your assets are managed or passed on in the future.
Start by reviewing how homeownership affects your overall retirement picture. Consider how long you plan to stay in the home, who might help with future decisions, and whether the property supports your comfort and financial goals as your needs evolve.
It’s also worth noting that tax rules for homeowners can vary depending on where you decide to live. Property tax rates, exemptions, and programs designed to assist older homeowners differ by state and local jurisdiction. Because these factors can be complex and highly personal, many retirees choose to speak with a qualified tax advisor, estate planner, or financial professional for guidance specific to their situation.
If you choose to speak with a professional, here are a few questions you might consider asking:
- How could this property fit into my long-term estate plans?
- What should I know about ownership or beneficiary options for a home?
- Are there local or state tax considerations for retirement homes I should be aware of?
- Are there any age-related property tax programs or exemptions in this area?
- What general factors should people keep in mind when property planning in retirement?
5. Explore retirement-friendly community options
The type of community you choose can shape your lifestyle, social connections, and daily routines in retirement. Here are common retirement-friendly living options to consider:
55+ active adult communities: Designed for adults 55 and older with amenities, social clubs, and age-friendly features.
- Pros: Built-in social network, low-maintenance living, age-friendly amenities.
- Cons: HOA fees and rules, age restrictions for younger visitors or long-term stays.
Independent retirement communities: Offers a maintenance-free lifestyle with optional services like transportation, dining, or activities.
- Pros: Convenience, community support, optional services that simplify daily life.
- Cons: Monthly fees for services, less independence than a standard neighborhood.
Resort-style or active lifestyle communities: Planned communities focused on recreation and amenities such as golf, pools, clubhouses, fitness centers, and group activities.
- Pros: Year-round recreation, strong social environment, vacation-like setting.
- Cons: Higher costs for amenities, may feel busy or structured for those who prefer quieter living.
Traditional neighborhoods: Many retirees choose to buy homes in regular neighborhoods rather than age-restricted communities. These areas include residents of all ages and offer the familiarity of a typical residential setting.
- Pros: Broader mix of neighbors and flexibility for hosting family or friends.
- Cons: Fewer age-focused amenities and potentially more maintenance responsibilities.
When buying a house in retirement may not be the best fit
Buying a home isn’t right for every retiree. In some cases, flexibility, lifestyle changes, or financial uncertainty can make renting or other housing options a better fit. Here are a few situations where the downsides of buying in retirement may outweigh the benefits:
- You value flexibility or expect to relocate. Frequent moves, travel, or uncertainty about your long-term location can make renting a smarter choice than committing to a home.
- You want to simplify or avoid maintenance. Even low-maintenance homes still require some upkeep, which may not align with a lock-and-leave lifestyle.
- Your financial picture may change. If income, savings, or healthcare costs feel unpredictable, avoiding a large purchase may help preserve flexibility.
- You’re unsure how long you’ll stay. Since buying and selling come with costs, purchasing a home may not make sense if you don’t plan to remain there for several years.
- You’re concerned about common mistakes retirees make when buying a home. Selecting a home that isn’t future-friendly (like multi-level living or high upkeep) may create challenges later.
Renting vs. buying in retirement: Which is right for you?
When deciding between buying vs renting in retirement, think about what’s more comfortable for this stage of life. There’s no single answer to whether retirees should rent or buy. Buying offers long-term roots and the ability to make a space your own, while renting provides flexibility, downsizing, and fewer responsibilities. The choice between a rental vs homeownership comes down to how settled you feel, how much maintenance you want to manage, and the lifestyle you prefer.
Pros & cons of buying in retirement
Pros
- Long-term stability and a sense of home
- Freedom to personalize and make updates
- Can create roots in a community
Cons
- Ongoing home maintenance and upkeep
- Less flexibility if you want to move or travel
- More responsibility in managing the home
Pros & cons of renting in retirement
Pros
- Flexibility to move or try new locations
- Low-maintenance lifestyle with fewer responsibilities
- Easier downsizing and simpler daily living
Cons
- Less control over the space and any changes
- Possibility of needing to move if lease terms change
- May not offer the same sense of long-term permanence
Should you buy a home in retirement quiz
Answer Yes or No to the statements below:
- I want long-term stability and a place that truly feels like home.
- I plan to stay in the same area for several years and feel settled about where I want to live.
- I’m comfortable managing some level of home upkeep or arranging help as needed.
- I want the freedom to personalize my space and make it my own.
- The idea of putting down roots in a community feels exciting and right for this stage of life.
How to reflect on your answers:
- Mostly Yes: Buying may align well with the lifestyle you want in retirement.
- Mostly No: Renting or exploring flexible housing options may better support your goals right now.
- Mixed: Consider which factors matter most to you—stability or flexibility—and revisit the pros and cons before deciding.
The bottom line when buying a house in retirement
Buying a house in retirement is ultimately a lifestyle decision, one shaped by comfort, stability, and how you envision the years ahead. The best choice depends on your finances, long-term plans, and the type of home and community that support your future needs. Use these buying a retirement home tips as a starting point, and take time to explore your options so your next move truly enhances your retirement lifestyle.
FAQs on buying a house in retirement
1. Can you get a 30-year mortgage in retirement?
Yes, retirees can qualify for a 30-year mortgage if they meet lender requirements; income can come from sources like Social Security, pensions, or retirement accounts.
2. Is it better to buy or rent in retirement?
It depends on your goals, buying offers stability and long-term housing, while renting provides flexibility and fewer maintenance responsibilities.
3. What is the best age to buy a retirement home?
There’s no set timeline – many people start planning or buying based on their lifestyle and long-term goals.
4. Should I buy a retirement home before I retire?
Some buy a few years before retirement to settle in gradually, while others wait until after retiring for simplicity, timing depends on your comfort and readiness.
5. What should I look for in a retirement-friendly home?
Look for features that support long-term comfort, like single-level living, minimal stairs, low-maintenance design, and convenient access to daily needs.
6. Can I use retirement savings to buy a house?
Yes, it’s possible, but withdrawals may affect long-term savings or have tax implications, so it’s helpful to review options carefully.
7. Should I downsize when buying a home in retirement?
Downsizing can simplify upkeep and space needs, but the right choice depends on your lifestyle and how much room you’ll use.
8. Can buying a house affect my retirement income or taxes?
Owning a home may impact your monthly expenses and taxes, and some areas offer property-tax programs or exemptions for qualifying homeowners.