Although owning a home has been thought of as a nest egg, for some people, owning a house in retirement can be a liability. It can cause cash-flow problems and high debt. Depending on the real estate market, illiquidity may be a problem. This could cause a shortfall in available funds to finance retirement. Aging in place may come at a high cost as well.

There are many pitfalls to owning a home in retirement. It’s important to be aware of them so you can make an informed decision as to whether to stay in your home.

Affordability and Cost Burden Hinders Cash Flow

The cost of home ownership continues to rise. According to the United States Census Bureau’s American Community Survey (ACS), in 2024, the median monthly costs for homeowners with a mortgage was $2,035. This was an increase from 2023 when it was $1,960.

Homeowner’s Insurance Contributes to Cost Increase

Although this number is based on several costs, it primarily increased due to mortgage and homeowners’ insurance. According to Pew Research, 71 percent of homeowners say their home insurance cost have increased in the last few years.

From the Great Recession to the present, insurance costs have increased 74 percent, according to Harvard University’s Joint Center for Housing Studies. This is a variable cost that’s difficult to plan for in a retiree’s budget.

HOA and Condominium Fees

Out of 86.6 million households, approximately 21.6 million U.S. households paid homeowner’s association (HOA) or condo fees, according to the Census Bureau. The average HOA fee is $200–300, according to Hillcrest. However, some communities can charge fees as high as $1,000. These fees can be increased at any time. There’s also the possibility of an assessment.

Property Taxes Increase

The old saying is that the only guarantees in life are taxes and death. And that holds true for property taxes. According to Attom’s annual tax report, in 2025, property taxes for single-family homes rose 3.7 percent from 2024.

Attom’s property tax analysis showed that $396.8 billion in property taxes were levied on more than 89.6 million single-family homes.

Property taxes add to the overall cost burden of owning a home.

Utility Cost Increases

Although there are regional differences, nationally, the cost of electricity costs Americans twice the 2.7 percent of overall inflation in 2025, according to the U.S. Bureau of Labor Statistics. This is yet another variable affecting a fixed income.

Maintenance and Repair Costs

Aging homes often need costly repairs. And even minor repairs add up. You may not be up to doing do-it-yourself projects anymore and have to hire people to fix what you normally would have done.

A major repair can cost thousands of dollars. According to Cobex Construction Group, a replacement roof , for example, will cost about $4–11 per square foot. However, the region you live in and the the materials used could contribute to higher costs.

Downsizing Difficulties May Inhibit Financing

When retiring, traditionally, downsizing has been a sound financial option for reducing expenses. However, due to a phenomenon called shrinkflation, home buyers are paying more for smaller homes.

The average size of a new single-family home sold nationwide decreased by 11 percent between 2014 and 2025. Yet its price has increased by 74 percent, according to LendingTree. According to Freddie Mac, a 30-year fixed mortgage rate, as of May 7, 2026, was 6.37 percent.

There are also many hidden costs to buying and selling a home. There are agent commissions, taxes, possible home repairs, and other additional costs. According to Experian, these costs combined can add up to ten to 15 percent of your home’s final selling price. Downsizing from a large house may not be the answer.

Accessibility Renovations Can Be Costly

You may have budgeted most of your home expenses into your retirement plans, but did you consider home alterations that will be required as you age? Most older homes weren’t built with the needs of aging seniors in mind, and home modifications may be needed.

According to Fixr, the national average range for an aging-in-place remodel is $3,000–15,000. The national average is $9,500.

If you’re wheelchair bound, you may need to widen hallways. Widening a hallway without structural changes can cost between $800 and $1,400. However, if you need to make structural changes, it could be as much as $40,000. You also may need the doorway widened, which ranges between $300 and $25,000.

Bathrooms, which are the biggest safety hazards, may need modifications such as:

• anti-scalding temperature controls: $80–300


• grab-bars installation: $90–300


• comfortable height toilets: $100–1,600


• curbless shower: $2,500–9,000


• non-slip flooring: $4,500–8,000

Even if you only want one or two of these items, the cost adds up quickly. The cost of aging in place in an older home may not be economical.

House May Not Be a Reliable Nest Egg

During a seller’s market, when real estate is high-priced, you may think your home is the perfect nest egg. This is especially true if you have thousands to hundreds of thousands of equity.

But if you’re not close to retirement and are holding onto that nest egg dream, you might want to rethink it. Real estate has booms and busts, which come in cycles.

According to Berkshire Hathaway Home Services, economists Henry George and Homer Hoyt, among others, have studied real estate cycles. They piggybacked on studies from 1800. They noted that the U.S. real estate market follows a roughly 18-year cycle. This has held true for 100 years.

Modern-day economists Fred Foldvary, Fred Harrison, and Rober Schiller continued to study these cycles and predicted the collapse of 2008.

During the 18-year cycle, there is:

• phase II: Expansion (declining vacancy, new construction)


• long-term occupancy average (declining vacancy, no new construction)


• phase I: Recovery

The bottom line is that if you are planning to use your house as a savings account for the next 18 years, you may be in for a surprise if the market goes bust on schedule.

The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.