Planning to sell your house to fund your retirement? Think again
Many older Americans are facing a difficult financial situation because of debt, increased heath care costs, and more. It might seem easy to sell your home so you can afford to retire, but it might not be the best idea. There are three main obstacles to this plan, which are demographics, finances, and geography. For example, there are more baby boomers who own houses than there are Gen Xers to buy them, so the housing prices will fall.
- Millions of these homes owned by people aged 60 or older will hit the market and prices will fall because baby boomers can’t absorb all the available homes.
- Sellers in the Rust Belt will have trouble finding buyers, and sellers in the Sunbelt may as well. Again, in both instances, prices will have to fall to attract buyers.
- At their peak, boomers totaled around 76 million, but Gen Xers around 50 million which accounts for only two-thirds as many. Finding buyers for homes will be hard.
“Zillow says 34% of all owner-occupied homes in the U.S. are owned by people aged 60 or older”