The potential for homeownership to build wealth has not been lost on the millions of Americans who have done so and now enjoy a mortgage-free home with substantial value.
Not surprising then that the over 60s, many of whom started their real estate journey before affordability was the huge issue it is today, are proud of their largest investment and aren’t likely to give it up in retirement.
In fact, recent research from Fannie Mae has discovered interesting insights into the financial plans of this sizeable cohort including two thirds who are already retired and those who are still working but plan to retire within the next five years.
The Census Bureau estimates that the 60-plus population will make up almost one-third of the U.S. adult population in the next decade. Based on 2022 data that stated this cohort accounted for 29% of adult population and 44% of homeowners, continued growth at this scale would mean half of homeowners would be in this older demographic in the years ahead.
The Fannie Mae survey found that 72% of older homeowners said they are confident that they will have sufficient retirement income. This contrasts with 55% among a separate sample of older homeowners who have lower incomes and lower levels of retirement assets and savings. Sixty percent said they have done significant research and planning for retirement.
However, across all respondents, using home equity to fund their retirement is not of interest for most, with just 15% saying they would consider this.
Almost six in ten homeowners said they plan to age in place and would never sell their home – bad news for those struggling to buy as a result of interest rates and lack of supply. Around half as many would consider selling and less than
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