Why Boomers Aren’t Moving Out Of Their Big Homes

Baby boomers like Marta and Octavian Dragos are deciding to remain in their big houses rather than move to smaller homes due to psychological and financial reasons. They have been together for over three decades, and like most parents their age, their four children have moved out.

Dragos, who is a retired teacher, is looking to downsize their 3,000-square-foot five-bedroom home rather than sell to avoid regrets. “For now, we’re staying put. Better to hold steady,” he said, acknowledging the tax repercussions and high mortgage rates as of late.

Boomers are not leaving their big homes

The aged couple feels alone in their once-upon-a-time dream home in El Cerrito, California, because they don’t have family nearby. “Trying to make a wise decision, both financially and for our well-being,” Dragos explained. Sadly, it is hard to find apartments in neighborhoods they are familiar with, coupled with the expenses and mortgage rates, which is as good as modifying their current home.

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Due to several other boomer’s decisions to retain their homes, prices and house availability in the US have remained low; however, upon consideration, putting their house for sale will incur high capital gains taxes, which will eat into their profit and leave nothing impressive for their retirement.

A smaller home would cost more

As ironic as it sounds, moving into a smaller home would cost the Dragos more, seeing that the value of their large house, though increased over the years, is the same price as a condo in the same area. “It’s more than a little pill to swallow, it’s a serious issue,” a retired physicist named Paul Poslen said.

Paul and his wife sold their home in Livermore, California, and moved to a retirement community to access tailored healthcare and an environment they could fit in. However, the couple are complaining that doing that isn’t cheap.