At the age of 50, you may feel that you've missed your chance to become a homeowner. However, data suggests that you're not alone. The median age for first-time homebuyers in the U.S. is 40, a record high, as revealed by a November report from the National Association of Realtors. Furthermore, Census data indicates that around 30% of households helmed by people age 50 or older do not own their homes.
Purchasing a house at 50 is indeed different from buying one at 30, owing to fewer working years ahead, and the looming reality of retirement. Also, there are several financial considerations.
Securing a fixed mortgage payment safeguards you from future rent hikes after retiring. A 2024 Investopedia study found that about 64% of renters aged 65 and above are cost-burdened, which means they spend more than 30% of their income on housing.
Even with a mortgage, home ownership can stabilize or decrease housing costs once the loan is fully paid, plus, it allows you to build equity. For example, in the last quarter of 2025, the median sale price of a single-family home was $405,000, according to the Census Bureau. If you plan to stay in one house for at least seven to ten years, this home equity can become a tangible asset for you, especially if you decide to downsize in the future.
However, according to the Federal Reserve's 2022 Survey of Consumer Finances, the median retirement account balance for households aged 45 to 54 was $115,000, and $185,000 for ages 55 to 64. These numbers fall short of providing a comfortable retirement for most people, and if you have similar retirement savings, a large down payment could setback your savings further.
If you start a 30-year mortgage at the age of 50, it will end when you're 80. Even a 15-year term means making payments until the age of 65, the age of retirement. Besides, the expenses are not limited to the mortgage. Home insurance premiums have surged 57% since 2019, and property taxes have escalated 30% over the same time frame.
Using funds from a 401(k) or IRA for a down payment incurs taxes and a 10% early withdrawal penalty if you're younger than 59. While the IRS does permit up to $10,000 penalty-free withdrawals from an IRA for a first home purchase, this figure is significantly below the median first-time home buyer down payment of 10% on a median home price of over $400,000.
If the numbers make sense, some strategies could safeguard your retirement while owning a home. Buying a house at 50 could be a wise decision if you have a stable income, some retirement savings, and you plan to settle in one place long enough to build equity. However, if your retirement savings are scanty and your income is not stable, it may be more advantageous to rent a house and invest more money in your 401(k) for a better position at 65.