Kim Cayes, a 67-year-old from Parsippany, New Jersey, banked on selling her four-bedroom house to support retirement. She bought the home for $245,000 in 2000 and its value now stands at nearly $700,000. Despite the increase in equity, Cayes is reluctant to leave northern Jersey, where two of her three adult children live.
She struggles to find a single-story home within the $400,000 to $450,000 range that doesn’t require significant renovation or shows, isolating from her community. “Thinking I’m going to spend the final years of my life in a worse situation than I’ve ever been in — that’s just so depressing,” Cayes says. “Especially when my friends are all traveling around the world with their spouses and constantly posting on Facebook.”
Similarly, Dorothy Lipovenko, 71, and her husband have lived in their single-family home in Montreal for nearly 25 years.
They’ve found the prospect of downsizing daunting due to the high prices of new condos and the poor condition of older homes. Lipovenko dreams of a smaller, single-floor suburban home but recognizes the significant emotional and physical undertaking this would involve. “It’s not just giving up possessions and going into a smaller space; it’s shrinking a lot of things to fit a new mindset,” she explains.
“I just can’t see my husband and I spending the last decades of our life in a little apartment.”
On the West Coast, 60-year-old Andrea S.
Baby boomers face downsizing challenges
from Sherman Oaks, California, also faces a dilemma.
Living in a single-story starter home with a housemate, she’s unsure if she can afford to stay. Bought in 1994 for $245,000, her home is now valued at about $1.3 million. Andrea’s struggles include a head injury from a car crash, the economic effects of the pandemic, and Hollywood’s downturn affecting her income.
Repair costs for her home are rising, and she’s apprehensive about losing her walkable, bus-accessible community. “If I can’t get a job that covers me enough to cover my bills, then I have to think about do I sell the house,” she says, highlighting her concerns about finding affordable homes that meet her needs. As many baby boomer homeowners prepare for retirement, they face an unexpected challenge: despite soaring home values, finding affordable, suitable homes to downsize into has become increasingly difficult.
Rising home prices, high mortgage rates, and low inventory of affordable housing are leaving many feeling stuck. These stories reflect a broader issue faced by many baby boomers trying to balance economic realities and desired quality of life in retirement. With escalating housing costs, many are left wondering if they will ever find a perfect retirement home.
