Many baby boomers either never purchased a home in their younger years or lost their homes during the 2007 to 2012 recession. Born between 1944 and 1964, they are between 60 and 78 years old in 2024. With 76 million baby boomers currently in the U.S., many are now in retirement and wonder, “Am I too old to buy a home?”
While certain activities, such as playing in the NFL, that may be limited by age, buying a home is not one of them. The National Association of Realtors® reports that approximately 25% of first-time homebuyers are over the age of 52.
A common myth that deters seniors from purchasing a home later in life is the belief that they are too old to qualify for a mortgage. However, under the Equal Credit Opportunity Act, lenders cannot discriminate based on age. Instead, all borrowers, regardless of age, must demonstrate good credit, manageable debt levels, and sufficient income to cover monthly mortgage payments. Still, it’s essential to evaluate whether buying a home is right for you.
Having established that age is never a barrier to buying a home, there are several factors to consider to determine if purchasing a home is the right choice for you:
Consider the financial aspects
If you are applying for a mortgage, the main thing you need to consider is whether or not your cash flow will be able to meet the monthly payments in the long term. Consider if you could afford the costs if any life-changing event occurs, such as losing a spouse. If you are still working, can you afford the payments once you retire? If you are buying a home with a Homeowner’s Association, check the likelihood of increases in that fee that your budget could cover.
Consider the market
In markets like Boulder County, with a proven track record of home appreciation, it’s pretty safe to assume that the home you purchase is going to increase in value. If you are looking in a market where values have a history of declining, it may not be such a great idea to be a home buyer.
Homeowners who have accumulated equity over the years can purchase a smaller home and eliminate mortgage payments through a reverse mortgage.
Consider the lifestyle the home offers
Some baby boomers want to travel the world and have a lock-and-leave setup. Others want to have room for grandchildren to visit regularly. Others are most concerned about nearby recreational opportunities like golf courses and access to infrastructure like shopping and medical care. 55+ communities offer many amenities for active seniors to stay fit for the rest of their life.
Consider disabled access
Aging in place is a key goal for many seniors today. Although a particular home may suit your current level of physical mobility, it’s important to consider whether the house will remain suitable if you or a family member experience a disability or other health issues in the future.
Consider space for a live-in caregiver
Having a space for a caregiver to reside could be ideal for aging in place and potentially avoiding moving to assisted living. In areas where Accessory Dwelling Units (ADUs) are permitted, this arrangement can provide a convenient solution for accommodating a live-in caregiver.
Consider the amount of maintenance required
Some baby boomers enjoy gardening and handling minor home maintenance at retirement age, while others prefer to avoid it entirely. The trade-off is that homes with the most minor maintenance requirements often incur higher homeowner association fees.
Consider access to transportation
At some point in time, everyone will need to stop driving. Access to transportation opportunities to travel to day-to-day activities becomes more critical.
Make a decision
Once you’ve weighed all the factors, you can make an informed decision about buying a home—just remember, age should never be a barrier. It’s never too late to purchase a home!
If you choose to begin the home-buying process, consult a mortgage lender and seek a Realtor® with a Seniors Real Estate Specialist® (SRES®) certification.
Duane graduated with a business degree and a major in real estate from the University of Colorado in 1978. He has been a Realtor® in Boulder since that time. He joined RE/MAX of Boulder in 1982 and has facilitated over 2,500 transactions over his career. Living the life of a Realtor and being immersed in real estate led to the inception of his book, Realtor for Life. For questions, e-mail duaneduggan@boulderco.com, call 303.441.5611 or visit BoulderPropertyNetwork.com.