Jul 11, 2026
Around 66% of adults owned a home in 2024. Census data also tells us that homeowners tend to be wealthier than renters.
A shocking 89% of Americans even believe homeownership to be either essential or important to achieving their vision of their future. So, it’s not a surprise that many people purchase properties as they age and earn the money to do so.
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But not everyone wants to be a homeowner.
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Let’s pretend, for example, that Samantha and Ryan are in their 60s and are planning to retire in two years. They’ve been renting a house for a while, and they want to continue doing so as they’re enjoying having no maintenance expenses and don’t want to go back to dealing with the headache of unexpected repairs.
However, Samantha and Ryan are feeling a ton of pressure to purchase a home, as everyone they talk to says they should own a property so they don’t have to worry about rent in retirement. Is this good advice, though? Financial experts don’t necessarily think so, and there are a few reasons why.
The costs of buying may be higher — and may not be affordable
The first big factor to think about is that rental costs may actually be lower than the cost of ownership.
Renting is cheaper than owning a home in 27 of the 50 largest U.S. metro areas in 2026, and both mortgage rates and home prices remain high, making finding an affordable home anywhere more challenging.
“When it comes to renting versus buying a home in retirement, you must be willing to look at the facts – income versus debt,” Cynthia Campos Delgado, founder and financial advisor at Campos Wealth Management, told Moneywise.
Samantha and Ryan absolutely don’t want to struggle to afford the higher payments just to become homeowners in their golden years, especially if they’re already worried about making ends meet.
“If you are on a fixed income and do not have yourself in a place where you actively save and have an emergency fund established, you might consider renting. If your funds barely cover current living expenses and you do not have a surplus each month after covering necessary expenditures, you might also consider renting,” Delgado said.
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Neither option for paying for a house is great
The next thing Samantha and Ryan have to consider is how they’d pay for a home. They have two options, and both have their own problems:
- They could borrow: Far more people are carrying mortgages into retirement than ever before, but that doesn’t mean it’s a good idea. Committing to a monthly mortgage payment, especially if it is higher than rent, could mean straining their retirement budget.
- They could pay cash: This would probably mean making a large withdrawal from their retirement accounts, which could have tax consequences and potentially raise their Medicare premiums. They also risk taking so much out of their accounts that they don’t have enough left invested to continue to earn sufficient returns that help cover other costs annually.
If they did want to consider buying, they’d have to make sure doing so wouldn’t affect their retirement income over the long term.
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“You should start by seeking out a financial professional and build a retirement income plan,” Domenick D’Andrea, founder of DanDarah Wealth Management, told Moneywise. “The last thing you want to do is to overextend yourself and your finances when deciding to retire.”
Continuing to pay rent, retaining the flexibility to downsize easily to a cheaper rental if needed, and maintaining a safe withdrawal rate from their accounts may be a better move than straining their budget to buy a house and potentially leaving themselves with too little money in the future.
“You want to have additional funds available to put aside to be able to give yourself a raise in income in the future as costs increase,” D’Andrea said. “The last thing you want to do is to have to go back to work to cover the additional costs.”
Maintenance and unexpected repairs could become a big issue
Beyond the cost of a potential mortgage or raiding retirement plans, there’s another key consideration: The cost and labor involved in maintaining a home. Owning a home will come with wear and tear repairs along with emergencies like a new boiler or AC system. Your finances need to be able to handle that.
This isn’t something you have to worry about if you aren’t a property owner. “Most maintenance is covered when you rent, and it is easier to get up and travel when you aren’t worried about day-to-day maintenance of a house,” D’Andrea said.
And remember, maintaining a home will only get harder as you get older. “If your health is ailing or your finances are stretched, no need to burden yourself with all the things being a homeowner brings,” said Delgado.
So, it turns out Samantha and Ryan aren’t wrong to continue renting, and anyone who tells them otherwise is giving them advice they probably don’t need to follow.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
