The older Americans get, the more they like to buy big houses

The couple Angela and Victor Martino and their two daughters used to live in a one-story house of less than 186 square meters in Denair, California. After the children grew up and moved away, the couple bought a house of about 465 square meters, three times larger, right next door.

After a year of renovation, the new house has a large kitchen, enough space to place the specialized meat slicer that Victor uses during family gatherings. The entertainment room for 7 grandchildren is paved with polished concrete to limit damage. The bathtub in the master bedroom is specially designed to help the couple get in and out more easily as they get older.

Victor affirmed that he has no intention of moving to a smaller house. He and his wife often celebrate Thanksgiving, Christmas, birthdays, and have their children stay when their parents are away.

The Martino family represents an increasingly popular trend among well-off older Americans. Instead of selling their home to reduce expenses after retirement, they buy larger properties or expand where they live.

These houses often have large kitchens, living rooms for children and grandchildren, main bedrooms on the first floor and handrails in the bathroom. The homeowner wants to have a space to organize gatherings and at the same time ensure that he can live a long life when he is old.

This trend reverses the traditional notion that retirees should sell their large homes and move to smaller ones, thereby reducing maintenance costs and releasing some of their accumulated assets.

The Covid-19 pandemic has contributed to changing the way many people view housing. Lockdown has made them value gatherings more, while working remotely has allowed adult children to visit more often and stay longer. Rising house and stock prices also help them have more financial resources.

Ed and Mary Smith used to live about five hours away from their three children in the Boston area. In 2022, they moved from suburban New Jersey to Falmouth, Massachusetts, and bought a house of about 372 square meters, about 46 square meters larger than their old residence.

Proceeds from the sale of a house in New Jersey and a summer home in Falmouth covered the nearly two million dollar price tag. The main bedroom is located on the first floor, while the second floor is for the three children and 6 grandchildren when they visit.

About 7% of home buyers 61-70 years old said the need for more space was the main reason they chose a new place to live, up from 4% in 2016, according to the American Association of Realtors (NAR). The rate of buying small houses is still slightly higher, but the group choosing large houses is increasing rapidly.

“Baby boomers”, the group born between 1946 and 1964, currently account for the largest proportion of home buyers in the US. They make up about 42% of homebuyers, higher than any other generation.

The advantage of baby boomers also lies in the ability to pay in cash. According to NAR, about 50% of buyers in the late baby boomer generation and about 40% of younger generations of this generation often pay completely in cash, without needing a mortgage.

The average home value in the US increased about 45% in the 5 years through February 2025, helping many longtime homeowners accumulate large amounts of capital to buy their next property.

Financial advisor April Tardiff at stock brokerage and asset management firm Merrill Lynch said all eight of her clients retiring this year moved to larger homes, while in the past five years only one person chose to downsize.

The trend of older people keeping or continuing to buy large houses occurs while the US lacks about 4.03 million houses in 2025. While many young families have difficulty finding large houses, homeowners of the baby boomer generation have less incentive to sell.

In addition to wanting to be close to family, taxes and supplies also make older people hesitant to sell their homes. Some don’t want to incur large capital gains taxes when selling real estate that has appreciated in value over the years. In that context, many older people choose to stay or buy a larger house, adding first-floor bedrooms, handrails and separate spaces for generations in the family.

“I only lived in a small house when people dug a hole to bury me 2 meters into the ground,” Mr. Victor said humorously.