More Buyers in Their 60s and 70s Are Still Using Mortgages in Today’s Housing Market
Older Buyers Are Playing a Bigger Role in the Housing Market
The housing market is not just being shaped by younger generations. According to the National Association of REALTORS®, many homebuyers in their 60s and even 70s are still using mortgage financing when purchasing homes. This trend highlights how housing decisions continue well into retirement years as Americans rethink how they manage housing, equity, and long-term financial planning.
NAR Deputy Chief Economist Jessica Lautz recently noted that the median age of repeat homebuyers has reached 62, the highest level recorded since the association began tracking this data in 1981.
This shift reflects how demographic trends and rising home values are influencing the housing market.
Why Older Buyers Are Still Taking Out Mortgages
Many assume older buyers pay entirely in cash, but that is not always the case. Even buyers approaching or entering retirement often choose to finance part of their purchase rather than use all of their savings.
There are several reasons for this:
• Preserving retirement savings rather than tying up all available funds in a home
• Taking advantage of built-up equity from a previous home sale while financing the remaining balance
• Maintaining financial flexibility for healthcare, travel, or other retirement needs
In many cases, older buyers are repeat homeowners who have accumulated equity over decades. Instead of paying entirely in cash, they often use that equity as a large down payment and finance the rest through a mortgage.
Housing Affordability Affects All Age Groups
Housing affordability is often discussed as a challenge for first-time buyers, but it is also impacting older Americans. Rising home prices, insurance costs, and property taxes can affect retirees just as much as younger households.
As a result, some older buyers choose mortgage financing to manage their monthly cash flow more effectively rather than committing a large portion of their retirement savings to a home purchase.
This strategy allows them to maintain liquidity while still securing the home they want for the next stage of life.
Changing Demographics Are Reshaping the Housing Market
The growing presence of older buyers reflects broader demographic changes. As Americans live longer and remain active later in life, housing decisions often continue well into retirement.
Some buyers in their 60s and 70s are:
• Downsizing to smaller homes
• Relocating closer to family
• Moving to more walkable or lifestyle-focused communities
• Purchasing homes better suited for aging in place
These life transitions are helping shape demand across many housing markets nationwide.
What This Means for the Housing Market
The increasing participation of older buyers shows that homeownership decisions are no longer limited to early adulthood or mid-career years. Instead, housing continues to play a central role in financial planning throughout life.
For the broader housing market, this means:
• Repeat buyers continue to drive a significant portion of transactions
• Equity accumulated over time remains a powerful buying tool
• Mortgage financing remains relevant even among older homeowners
As demographic trends evolve, housing demand will increasingly reflect the needs of multiple generations participating in the market simultaneously.
Bottom Line
Homebuyers in their 60s and 70s are still actively purchasing homes, and many continue to rely on mortgage financing to do so. Whether preserving retirement savings or leveraging home equity, older buyers are playing an important role in shaping today’s housing market.
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Ranked among the top 1% of real estate teams in the Chicagoland market, Cory Tanzer and the Cory Tanzer Group are experts in helping buyers and sellers navigate today’s market across Downtown Chicago, the North Shore, and the Western Suburbs. Recognized for their neighborhood expertise in areas like University Village, University Commons, South Loop, and Pilsen, the team helps clients stay one step ahead by understanding where the Chicago market is moving next.
