Financial Advisors Urge Caution Against Buying a Home Near Retirement

As the desire to own a home near retirement grows, financial advisors are cautioning against the idea. With the costs of buying a home rising, and the maintenance and repair costs piling up, renting may be the better option for many individuals.

According to the U.S. Census Bureau, around 66% of adults owned a home in 2024 (1). However, Census data also reveals that homeowners tend to be wealthier than renters (2). But is owning a home the key to a secure retirement?

Financial experts say no. With mortgage rates and home prices remaining high, finding an affordable home is becoming increasingly challenging. In fact, renting is cheaper than owning a home in 27 of the 50 largest U.S. metro areas in 2026 (4).

‘When it comes to renting versus buying a home in retirement, you must be willing to look at the facts – income versus debt,’ says Cynthia Campos Delgado, founder and financial advisor at Campos Wealth Management (7). ‘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.’

Delgado’s advice is echoed by Domenick D’Andrea, founder of Dandarah Wealth Management. ‘You should start by seeking out a financial professional and build a retirement income plan,’ he says. ‘The last thing you want to do is to overextend yourself and your finances when deciding to retire.’

So, what are the alternatives to buying a home? For Samantha and Ryan, who are in their 60s and planning to retire in two years, renting may be the better option. With no maintenance expenses and the flexibility to downsize easily, renting can provide a more secure and stress-free retirement.

But, 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.

‘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,’ says D’Andrea.

So, what’s the takeaway? Financial advisors are warning against buying a home near retirement, and renting may be the better option. With the costs of buying a home rising, and the maintenance and repair costs piling up, renting can provide a more secure and stress-free retirement.