Financial advisors warn against buying a home near retirement — renting beats owning in 27 of 50 largest U.S. metros

Around 66% of adults owned a location (1) successful 2024. Census information besides tells america that homeowners thin to beryllium wealthier (2) than renters.

A shocking 89% of Americans (3) adjacent judge homeownership to beryllium either indispensable oregon important to achieving their imaginativeness of their future. So, it's not a astonishment that galore radical acquisition properties arsenic they property and gain the wealth to bash so.

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But not everyone wants to beryllium a homeowner.

Let's pretend, for example, that Samantha and Ryan are successful their 60s and are readying to discontinue successful 2 years. They've been renting a location for a while, and they privation to proceed doing truthful arsenic they're enjoying having nary attraction expenses and don't privation to spell backmost to dealing with the headache of unexpected repairs.

However, Samantha and Ryan are feeling a ton of unit to acquisition a home, arsenic everyone they speech to says they should ain a spot truthful they don't person to interest astir rent successful retirement. Is this bully advice, though? Financial experts don't needfully deliberation so, and determination are a fewer reasons why.

The costs of buying whitethorn beryllium higher — and whitethorn not beryllium affordable

The archetypal large origin to deliberation astir is that rental costs whitethorn really beryllium little than the outgo of ownership.

Renting is cheaper than owning a location (4)in 27 of the 50 largest U.S. metro areas successful 2026, and some owe rates (5) and location prices (6) stay high, making uncovering an affordable location anyplace much challenging.

"When it comes to renting versus buying a location successful retirement, you indispensable beryllium consenting to look astatine the facts – income versus debt," Cynthia Campos Delgado (7), laminitis and fiscal advisor astatine Campos Wealth Management, told Moneywise.

Samantha and Ryan perfectly don't privation to conflict to spend the higher payments conscionable to go homeowners successful their aureate years, particularly if they're already disquieted astir making ends meet.

"If you are connected a fixed income and bash not person yourself successful a spot wherever you actively prevention and person an exigency money established, you mightiness see renting. If your funds hardly screen existent surviving expenses and you bash not person a surplus each period aft covering indispensable expenditures, you mightiness besides see renting," Delgado said.