Forget downsizing — rich boomers are going even bigger in retirement with 5,000-square-foot dream houses. What upsizing means for your wallet

“We’ll downsize when they plant me 6 feet into the ground,” Victor Martino, 64, told the Wall Street Journal (WSJ).

Following a year-long renovation, the home now includes a large kitchen for entertaining, a playroom built to withstand visits from their seven grandchildren and accessibility upgrades designed to help them remain there as they age.

The shift reflects both the financial strength of many older Americans and changing ideas about retirement, as today’s retirees increasingly prioritize lifestyle and multigenerational living over reducing housing costs.

Does this mean that boomers are no longer just looking for a place to settle, but are actively rewriting the retirement playbook? And, more importantly, should you do the same?

What’s fueling the upsizing trend

The Martinos aren’t alone. According to the WSJ, 7% of homebuyers between the ages of 61 and 70 said they purchased their home because they wanted more space, up from 4% in 2016.

Baby boomers now account for roughly 42% of all homebuyers, the largest share of any generation. Many have also benefited from decades of rising home values and stock market gains, giving them greater purchasing power than younger buyers who often face higher borrowing costs and affordability challenges.

Financial advisor April Tardiff has watched the trend unfold firsthand.

She told the Journal that all eight of the clients who retired this year bought larger homes, while only one client has downsized over the past five years.

“The historic retirement play of sell your home and buy a smaller one just isn’t happening,” Tardiff said.

Instead, many retirees are looking for homes that better fit how they expect to spend the next chapter of their lives.

Some are adding first-floor primary suites, wider doorways and accessible bathrooms so they can comfortably age in place. Others are creating guest suites or accessory dwelling units (ADUs) to make room for adult children, grandchildren or their own aging parents.

With families spending more time together and remote work making extended visits easier, many empty nesters began viewing larger homes as places to bring loved ones together rather than expenses to trim.

Not every retiree has the financial flexibility to make that choice, however.

Many boomers can upsize because they purchased homes decades ago before prices surged and have benefited from years of appreciation in both real estate and the stock market. Others remain in their current homes because smaller properties have become harder to find or no longer offer meaningful savings after factoring in moving costs and today’s home prices.

What upsizing means for your finances

While upsizing in retirement may fit your lifestyle, it brings higher ongoing costs — larger mortgages, taxes, insurance, utilities and maintenance — that can reshape your budget. Renovations for accessibility or added space can also carry hefty price tags.

Before committing, financial professionals recommend stress-testing your retirement plan to ensure the purchase aligns with your income, withdrawal strategy and long-term goals. If you move, review your homeowners insurance, as larger homes and renovations often increase replacement costs.

For those seeking real estate exposure without the responsibilities of direct ownership, real estate investment platforms can offer an easier alternative.

You don’t need to buy a bigger home to invest in real estate

Buying a larger primary residence is not the only way to increase your exposure to the property market.

For investors who want to add real estate to their portfolios without taking on a mortgage, tenants or maintenance, fractional investing platforms can offer a lower-effort alternative.

You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100.

Investors with larger portfolios may prefer opportunities in private commercial real estate.

For accredited investors looking to diversify beyond public equities, Bonaventure offers access to institutional-grade multifamily real estate investments in high-growth markets with a minimum investment of $25,000.

Bonaventure focuses on income-producing apartment communities, offering potential tax advantages through structures like 1031 exchanges and UPREITs, allowing you to build passive income and wealth while the company manages the properties.

Plus, Bonaventure has a fully-loaded resource center that teaches you everything you need to evaluate multifamily investments. Sign up today, explore your options and construct your real estate portfolio.

While diversifying your investment portfolio is a smart financial move, it is equally important to consider how your housing choices might impact your protection needs.

If you do own real estate and are tempted to upsize, it’s important to consider the other costs associated with housing and not just the mortgage rates.

A larger home may require more insurance coverage

Upsizing can also change how much homeowners insurance you need and rates are already on the rise.

The average single-family homeowner already pays an eyewatering $2,370 in yearly premiums, but to make matters worse, 47% of policyholders saw their rates go up in 2025, according to a 2025 press release by J.D. Power.

This is bad news for those who simply auto-renew with their current provider every year. In such a quickly shifting landscape, it can pay to take 2 minutes to shop around for better rates.

OfficialHomeInsurance.com makes it easy to find the coverage you need without the hassle of calling multiple providers for quotes.