New data shows that more Americans are going into retirement with mortgage debt. Is this a problem, and what does it mean for today’s Boston condominium owners?

According to a recent article in Bloomberg, mortgages that stretch later into life are becoming more common, particularly as Millennials wait longer to purchase a Boston condo. “A lot of today’s Millennials are entering the market quite a bit later than their parents, so just by definition, they’re going to be carrying more debt later in life,” said Sam Khater, deputy chief economist at CoreLogic.

They also may be modeling their parents’ behavior. According to the Harvard Joint Center for Housing Studies41% of Americans over the age of 65 carry mortgage debt. This trend is entirely new. For most of homeownership history, people tended to buy houses young – in their 20s or early 30s – and if they did buy a second home, they did it before they were 40. Paying off a 30-year mortgage was the main goal of working life. In 1995, just 22% of homeowners 65 and older carried mortgage debt.

Mortgage Debts Are Around Longer

Things have changed. Though owing on a mortgage can be a problem for some seniors — those who no longer have a source of income and do not have significant retirement savings set aside — for many older homeowners, it’s simply a matter of convenience to hold a mortgage later in life.

A recent article in the New York Times underlines this fact. For example, one couple in their early 70s took out a 30-year mortgage to finance a new home. They did this despite having just sold a home that they owned outright. The reasoning was to put the extra cash into savings for retirement, make improvements that would make the new home more livable as they aged, and make the mortgage payment with their pension payments.

People are living longer, and looking at retirement as simply the next stage in their adult lives — not a short road to the grave. The rise in debt for those 65 and older may simply reflect a change in lifestyle. Seniors may be asking themselves why they would tie up all their resources in a piece of real estate, when they could be using those funds to enjoy their retirement. Unfortunately, it also means there is a lower priority in general to leave an inheritance for those that follow after, but that would be a discussion for a different article.

Retire in a Different Housing Market

Nearing retirement age often means that a change in housing is necessary. The kids are grown, and it no longer makes sense to take care of a house with four bedrooms. Many retirees will also find that moving to a new city makes sense.

Ready to purchase your retirement Boston Beacon Hill condo? There are mortgage options available even for those who are no longer in the workforce. Work with the best and take advantage of early real estate market shifts — contact our top Boston real estate agents today.

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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