Aging in place
You don’t need to be a multi-billionaire with an underwater music system to be in love with your home. A recent survey by OpenDoor found that 66% of Americans over the age of 55 said they were emotionally attached to their primary residence. Over 56% of this cohort had spent more than 15 years living in their current property.
Similarly, Gates purchased his property for just $2 million in 1988. It’s easy to see why a big change would be unappealing after 37 years.
And it pays to stay in place. For Gates, whose home is now estimated to be worth upwards of $130 million, selling will mean owing the IRS a fair share for his significant capital gains. While he can likely afford it — considering the average sale price for a U.S. home has more than tripled over the past 30 years — many older adults who consider downsizing face a hefty tax bill and elevated valuations for smaller homes.
As a result, empty-nester seniors own 28% of the nation’s large homes, while millennials with kids own just 14%, according to a report published by Redfin in 2024.
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While there’s a cost to downsizing some older adults might find hard to stomach, aging in place also comes with its own costs. For some older adults, the need for at-home care, or hefty property taxes and third-party maintenance services may make downsizing the better financial option for them.
For many seniors, downsizing could also unlock equity to fund essential retirement and medical expenses.
If you’re an older adult weighing whether to age in place, you may want to speak with a qualified financial planner to understand whether holding onto your property is the best move for your finances. And while it may be an emotional
And, if like Gates, you’re a single empty-nester, don’t forget to consider the emotional implications of this decision. It’s important to ensure you don’t isolate yourself away in your big home. Loneliness is one of the biggest threats for older adults in the U.S., and studies have shown that feeling isolated, a lack of companionship and having infrequent social contact are “strongly associated with poorer physical and mental health among older adults.”
Finding community — wherever you land — should be a priority to ensuring you flourish in this next stage of your life.
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