The U.S. housing market is experiencing a major demographic shift as the typical home buyer grows older.

The median age for first-time buyers has reached 38 years, while the overall median buyer age is now 56—a significant increase from last year.

Younger buyers struggle with record-high home prices and mortgage rates, making it tougher than ever to enter the market.

Older generations, especially baby boomers, are taking the lead, accounting for 42% of all home purchases and using their substantial financial resources to pay large down payments or buy homes with cash—something 26% of buyers managed in 2024.

First-time buyers now represent only 24% of sales, a record low, reflecting their uphill battle against student loans and living costs.

This aging trend is expected to slow housing turnover and shift demand toward homes adaptable for later life.

"The future belongs to those who believe in the beauty of their dreams." - Eleanor Roosevelt

For decades, retirement planning was visualized as a "three-legged stool," supported by:

Social Security

Employer pensions

Personal savings and investments

However, this model is becoming increasingly outdated. Pensions are rare, savings often fall short, and Social Security faces long-term funding challenges. Enter the four-legged stool—a modern framework that adds a fourth source of income to stabilize retirement: home equity.

The Four Legs of Modern Retirement Income

1. Social Security – Still foundational, but increasingly unreliable as a sole income source.

2. Qualified Retirement Accounts – 401(k)s, IRAs, and other savings vehicles.

3. Personal Investments – Brokerage accounts, annuities, rental income, etc.

4. Home Equity – Often overlooked, but potentially the largest untapped asset for seniors.

Unlocking the Fourth Leg with a Reverse Mortgage

A reverse mortgage allows homeowners aged 62 and older to access their home equity and convert it into lump sum cash, monthly disbursements, or a convenient line of credit. Borrowers do not have to sell their home or take on monthly mortgage payments to tap into their home equity. This can be a game-changer for senior homeowners.

How Reverse Mortgages Support Retirement Stability

Supplement income when Social Security and savings fall short.

Delay withdrawals from investment accounts, reducing market risk.

Cover unexpected expenses like medical bills or home repairs.

Eliminate existing required monthly mortgage payments, freeing up monthly cash flow. (Borrowers must pay property taxes, insurance, any HOA fees, and maintain the property.)

Final Thoughts

The four-legged stool approach recognizes that retirement income must be diversified. For many seniors, home equity is the missing leg, and a reverse mortgage can be the tool to unlock it. 

Give us a call at 516-856-0696 or check out our website at www.usamortgageconsultant.com.

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