Should You Buy a House at 50? What Experts Say About Catching Up Financially Later in Life

If you’re 50 and wondering if you’ve missed the boat on homeownership, the data suggests you’re not quite the outlier you might believe. The median first-time homebuyer in the U.S. is now 40 years old, a record high, according to a November report from the National Association of Realtors. Census data also shows that about 30% of households headed by people aged 50 don’t own their own home.

That said, buying a house at 50 is a different calculation than buying at 30. You have fewer working years ahead, retirement is closer, and there are financial trade-offs to consider.

The Case For Buying at 50

Locking in a fixed mortgage payment protects you from rent increases in retirement. An Investopedia analysis of the 2024 Census data found that about 64% of renters ages 65 and over are cost-burdened, meaning they spend 30% or more of their income on housing.

Owning a home, even with a mortgage, gives you a shot at entering retirement with stable or falling housing costs once the loan is paid off. You also build equity. The median sale price of a single-family home hit $405,000 in the last quarter of 2025, according to the Census Bureau. If you plan to stay in one place for at least seven to 10 years, home equity becomes a real asset you can use if you downsize later.

The Case For Holding Off

The Federal Reserve’s 2022 Survey of Consumer Finances found that the median retirement account balance for households aged 45 to 54 was $115,000. For ages 55 to 64, it was $185,000. Those numbers are not enough for most people to retire comfortably. If your retirement savings look similar, a large down payment could set you back further.

A 30-year mortgage started at 50 would last until you’re 80. Even a 15-year term means payments through 65, right at retirement age. And the costs go beyond the mortgage: home insurance premiums have jumped 57% since 2019, and property taxes have risen 30% over the same period.

Pulling from a 401(k) or IRA to fund a down payment triggers taxes and, before 59½, a 10% early withdrawal penalty. The IRS allows penalty-free withdrawals of up to $10,000 from an IRA for a first home purchase, but $10,000 is far less than the median first-time home buyer down payment of 10% on a median home price of more than $400,000.

Making It Work If You Buy

If the numbers line up, a few moves can protect your retirement while you take on a mortgage:

• Use catch-up contributions. In 2026, workers 50 and older can contribute $32,500 to a 401(k) and $8,600 to an IRA. Max those out before speeding up your mortgage payoff.
• Pick the right mortgage term. A 15-year mortgage costs more monthly but saves a huge amount in interest and gets you to a paid-off home before or at retirement.
• Keep enough cash on hand. Three to six months of expenses should stay in savings after closing, so an unexpected repair doesn’t force you into debt.

The Bottom Line

Buying at 50 can work well if you have a stable income, some retirement savings already in place, and plan to stay put long enough to build equity. If your retirement accounts are thin and your income is uncertain, renting and directing cash toward your 401(k) will likely leave you better off at 65.