Real Estate Expert Says “Baby Boomers Are Stuck in Houses They Don’t Want”

Millions of baby boomers may own homes that have risen sharply in value, but real estate expert Michael Bordenaro says that does not necessarily mean they feel financially secure or free to move, because many are finding that the homes they once expected to sell in retirement have become difficult and expensive to leave.

In a recent video, Bordenaro argued that the traditional retirement plan of building home equity, selling later in life and downsizing into something cheaper is no longer working as smoothly as many older homeowners expected, especially in expensive markets where smaller homes can still cost nearly as much as the properties they are trying to leave.

He described the result in blunt terms, saying some older owners effectively feel like “a prisoner in your own house,” even after decades of ownership and substantial appreciation.

Downsizing No Longer Guarantees Savings

Bordenaro began with the example of a 67-year-old New Jersey woman who bought her home in 2000 for $245,000, added an addition over the years and recently had the property appraised at about $700,000.

On paper, that looks like a strong financial outcome, but he said the reality is more complicated because New Jersey’s high property taxes, along with the broader rise in housing costs, have made staying there increasingly expensive.

The woman is semi-retired and has two adult children living with her, which adds another layer to the decision because selling the house could also disrupt the housing situation of other family members.

She would prefer to move into a single-story home priced somewhere between $400,000 and $500,000, but Bordenaro said she has struggled to find something suitable in familiar neighborhoods that does not require major repairs.

That creates what he called a “lateral financial move,” where the owner goes through the expense and stress of selling, buying and moving without ending up in a meaningfully better financial position.

For people who imagined downsizing would unlock cash and simplify retirement, that can be a frustrating realization.

Familiar Homes Can Be Hard to Leave

Bordenaro also pointed to a 71-year-old woman and her husband who have lived in the same house for roughly 25 years but have found that their local downsizing options are mostly expensive new condominiums or older homes needing substantial renovation.

She does not want to give up outdoor space, does not want to move into a condo and does not want to take on a major renovation project.

That leaves her with few attractive choices.

Bordenaro said this is a common problem because older homeowners are not simply comparing square footage and sale prices; they are also weighing access to family, medical care, walkable neighborhoods, familiar routines and the emotional cost of leaving a home they have known for decades.

That part of the story is easy to underestimate. A house may be financially inefficient, but it can still be tied to family history, neighborhood relationships and a sense of stability that becomes more important with age.

Some Owners Are Being Priced Out of Their Own Homes

Another example involved a 60-year-old California woman who already lives in a single-story home that would ordinarily seem well-suited for retirement, yet Bordenaro said even she is struggling with the cost of staying.

She bought the two-bedroom bungalow with an ex-partner in 1994 for $245,000, and the property is now estimated to be worth around $1.3 million.

Despite that large increase in value, Bordenaro said she has lower income than she expected at this stage of life, uses a roommate to help cover bills and faces rising maintenance costs on a 75-year-old house.

The HVAC system needs replacement, while the pool and large yard are costly to maintain.

She told the source Bordenaro cited, “I’m lucky to have this house, but I just hate the fact that this house is my pension fund.”

That comment gets to the heart of the issue: a person can be wealthy on paper because of home equity while still feeling cash-poor in everyday life.

The house may be worth more than $1 million, but that does not automatically pay for repairs, groceries, utilities or retirement expenses unless the owner sells, borrows against it or brings in more income.

Selling Can Create a New Set of Problems

Bordenaro said this California homeowner is also worried that selling would leave her unable to afford another home in a neighborhood with the same qualities she values, including walkability, grocery access and public transportation.

Because she has largely stopped driving, those features are not just preferences but practical needs.

She is also concerned about capital gains taxes if she sells, which Bordenaro identified as another obstacle for longtime owners whose properties have appreciated dramatically.

Even before taxes, he said many retirees are trapped between two unattractive options: stay in a house that costs too much to maintain, or sell and discover that the replacement home costs nearly as much.

That is why high home values can be a mixed blessing. Appreciation builds wealth, but when an entire region becomes more expensive at the same time, cashing out may not create the freedom owners expected.

Housing Costs Keep Rising After the Mortgage Is Paid

Bordenaro emphasized that the cost of homeownership extends far beyond the mortgage payment.

Property taxes, insurance, repairs, landscaping, utilities and major systems such as roofs or HVAC equipment all continue to rise over time, and those expenses can become especially difficult on a fixed or reduced retirement income.

He said this is why someone who bought a home decades ago at what now looks like an extremely low price can still end up struggling to afford it later in life.

The purchase price may be frozen in history, but nearly every other cost associated with the property keeps moving.

That is one of the more useful points in Bordenaro’s argument because younger buyers often look at older homeowners and see only the equity gain, while the owners themselves may be looking at the monthly cost of maintaining that asset.

Reverse Mortgages Come With Their Own Risks

Bordenaro said many retirees eventually turn to the equity in their homes as a source of retirement income, sometimes through reverse mortgages.

He cautioned viewers about relying too heavily on that strategy, arguing that reverse mortgages come with rules and obligations that borrowers must continue to meet.

If those terms are not followed, he said, the owner can still risk losing the property.

For someone whose home represents most of their accumulated wealth, that can be especially damaging.

His broader point was that home equity is valuable, but it is not the same thing as cash flow, and turning one into the other can involve costs and risks that people may not fully appreciate until later.

The Retirement Plan Is Getting More Complicated

Bordenaro’s main argument is not that baby boomers are worse off than younger buyers, but that owning a valuable house does not automatically mean retirement housing decisions are easy.

Many older homeowners benefited enormously from decades of appreciation, yet the same market that made their homes valuable also made replacement housing more expensive.

Some are staying because they cannot find suitable properties.

Others are staying because taxes, moving costs, emotional ties and low mortgage rates make leaving unattractive.

And some may simply be unable to turn their equity into a cheaper lifestyle without giving up too much in the process.

The result is a housing market where older owners can appear wealthy from the outside while still feeling financially boxed in, which helps explain why many remain in homes that no longer fit their needs even when they would rather move.