Ought to You Purchase a Home at 50? What Consultants Say About Catching Up Financially Later in Life

In the event you’re 50 and questioning when you’ve missed the boat on homeownership, the information suggests you are not fairly the outlier you may imagine. The median first-time homebuyer within the U.S. is now 40 years outdated, a document excessive, in keeping with a November report from the Nationwide Affiliation of Realtors. Census knowledge additionally reveals that about 30% of households headed by individuals aged 50 do not personal their very own residence.

That stated, shopping for a home at 50 is a distinct calculation than shopping for at 30. You will have fewer working years forward, retirement is nearer, and there are monetary trade-offs to think about.

The Case For Shopping for at 50

Locking in a hard and fast mortgage fee protects you from lease will increase in retirement. An Investopedia evaluation of the 2024 Census knowledge discovered that about 64% of renters ages 65 and over are cost-burdened, which means they spend 30% or extra of their earnings on housing.

Proudly owning a house, even with a mortgage, offers you a shot at coming into retirement with secure or falling housing prices as soon as the mortgage is paid off. You additionally construct fairness. The median sale worth of a single-family residence hit $405,000 within the final quarter of 2025, in keeping with the Census Bureau. In the event you plan to remain in a single place for not less than seven to 10 years, residence fairness turns into an actual asset you should use when you downsize later.

The Case For Holding Off

The Federal Reserve’s 2022 Survey of Client Funds discovered that the median retirement account steadiness for households aged 45 to 54 was $115,000. For ages 55 to 64, it was $185,000. These numbers are usually not sufficient for most individuals to retire comfortably. In case your retirement financial savings look related, a big down fee might set you again additional.

A 30-year mortgage began at 50 would final till you are 80. Even a 15-year time period means funds via 65, proper at retirement age. And the prices transcend the mortgage: residence insurance coverage premiums have jumped 57% since 2019, and property taxes have risen 30% over the identical interval.

Pulling from a 401(ok) or IRA to fund a down fee triggers taxes and, earlier than 59½, a ten% early withdrawal penalty. The IRS permits penalty-free withdrawals of as much as $10,000 from an IRA for a primary residence buy, however $10,000 is much lower than the median first-time residence purchaser down fee of 10% on a median residence worth of greater than $400,000.

Making It Work If You Purchase

If the numbers line up, a couple of strikes can shield your retirement whilst you tackle a mortgage:

• Use catch-up contributions. In 2026, employees 50 and older can contribute $32,500 to a 401(ok) and $8,600 to an IRA. Max these out earlier than dashing up your mortgage payoff.
• Decide the proper mortgage time period. A 15-year mortgage prices extra month-to-month however saves an enormous quantity in curiosity and will get you to a paid-off residence earlier than or at retirement.
• Maintain sufficient money readily available. Three to 6 months of bills ought to keep in financial savings after closing, so an surprising restore does not pressure you into debt.

The Backside Line

Shopping for at 50 can work properly when you’ve got a secure earnings, some retirement financial savings already in place, and plan to remain put lengthy sufficient to construct fairness. In case your retirement accounts are skinny and your earnings is unsure, renting and directing money towards your 401(ok) will probably depart you higher off at 65.