Should I Sell My House and Rent When I Retire? 9 Questions to Ask
Retirement’s around the corner, and with it comes a host of questions about how to transition into your new way of life. One of the more common sets of questions facing soon-to-be retirees revolves around your living situation and what to do with your home.
Your home is likely full of untapped equity, continual maintenance demands, stairs, special memories, and painfully recognizable empty spaces. It’s time to downsize, but what’s the right approach? You may be asking yourself:
“Should I sell my home and rent when I retire?”
Certainly, selling your home to rent when you retire is a major life upheaval fraught with potential benefits and inherent risks to your financial future.
In this guide, we’ve compiled a list of questions to ask yourself to help decide if this is the right decision for you. We’ve also infused guidance from Kelly Boulton, a top-selling real estate agent in Dallas with more than 22 years of experience, to offer an objective and informed perspective.
If you’re considering selling your home when you retire, ask yourself these 9 questions
These questions are designed to help you take some time to review the benefits and drawbacks of this decision carefully. If you find yourself answering “yes” more often than not, this may be a legitimate course of action to help you flourish in your retirement years.
1. Do I need an influx of cash?
Most Americans of retirement age have more of their wealth tied up in home equity than any other asset.
An article from USA Today shows the net worth in home equity for homeowners in the following age brackets:
Homeowner Age
Home Equity
Average Net Worth
45-54
$167,900
$571,300
55-64
$186,600
$743,100
65-69
$211,400
$804,600
70-74
$228,000
$821,000
75 and older
$241,700
$761,000
You may need to convert some of this equity into cash to handle any of the following typical financial needs that commonly arise for those in retirement:
Increased healthcare expenses and medicare premiums
Tax payments for tax-deferred retirement savings accounts
Increased food budget to accommodate dietary adjustments
Entertainment and travel
Family support and legacy planning
2. Are my monthly housing expenses increasing too much?
Even if your home is fully paid off, you can expect your housing expenses to continue to rise with increasing prices for home maintenance, and continual increases in property taxes and insurance.
According to a recent survey by USA Today, 54% of US homeowners report that home maintenance costs were higher than expected, and 28% said they’ve gone deeper into debt because of it.
In short, hanging onto your home may increase your housing expenses beyond your comfort limit.
3. Am I able to continue maintaining my home?
As you well know, homeownership brings with it a sizable amount of work to maintain the home, especially as time passes. Your ability to do maintenance tasks that you could do with ease when you were younger may become overwhelming and more time-consuming in retirement.
Maybe it’s time to enjoy your home, while letting someone else take care of the expense and hassle of home maintenance.
4. Do I have enough surplus in my fixed income to cover inflation?
Most retirees are on a fixed income, which presents a challenge in a world with continually rising living expenses.
According to the Bureau of Labor Statistics, overall inflation hit a 3.3% increase from May 2023 to May 2024 and continues to trend upward. You may be able to sell your home to invest in dividend-paying stocks or annuities.
Invested wisely, those dividends can help cover inflation-related living expenses.
5. Does my home fit my new lifestyle?
Your lifestyle will change in a lot of significant ways in retirement. You may benefit from asking yourself whether your current home can accommodate these changes.
