Alyson Austin
The thought of investing in a property as a “forever” home is becoming less of a long-term plan for many older Americans—as the cost of living, maintenance, higher mortgage payments, and insurance fees are starting to eat into their cash reserves. So, they’re coming up with a backup plan.
Alyson Austin, 56, was living and working in Southern California, but as she started to think about what life would look like as a retiree, it became apparent that her mortgage was draining the savings she’s built up for her golden years.
The expenses, coupled with her aging mother who lived across the country, convinced her to give up her California dreams for reality.
“I was dipping into my savings account to the tune of $3,000 per month when I was in California,” explains Austin, who recently moved to Maine.
Austin didn’t set aside the idea of investing. In fact, she decided to get her and her mom’s finances in order. It started with buying her mom’s home.
“I bought the home outright. She did not have a mortgage,” says Austin. “They bought the home for cash in 2005, and I offered her fair market value on the home.”
She wanted a mortgage so she has a homeowner’s tax deduction to improve her financial position.
“For me, it was better to buy her home that was large enough for both of us and I can manage finances for both of us,” says Austin.
Now, she’s making her life in Wells, ME—about 90 minutes from Boston.
(Alyson Austin)
Financial stability
Once she sold her California condo, her savings started adding up in Maine, Austin says.
“The home in California was valued at twice what this home is valued at. Therefore, the loan was much higher, and it was a condo with an HOA maintenance fee that was nearly $1,000 per month,” says Austin.
The savings comes in what she’s “paying” each month, she explains. She has a lower mortgage and isn’t saddled with the “incredibly high HOA fee,” because her Maine home does not have an HOA fee.
Austin says she paid $350,000 for her mom’s home, which has been appraised for $500,000.
“I am saving money, even though I am carrying most of the expenses for two people,” adds Austin. “The mortgage for this home is much more reasonable than it was for my home in California. Other living expenses, such as food and utilities, are manageable, and I am happy to give back to my mother in this way.”
Older generations
The median homebuyer age reached 56 in 2024, the highest in the data’s history (back to 1981). The median first-time buyer age also reached a new high of 38, underscoring the difficulty of today’s market for would-be first-time buyers, according to a Wall Street Journal/Realtor.com report.
The latest findings from the National Association of Realtors® 2025 Home Buyers and Sellers Generational Trends report found that younger boomers were the most likely to purchase in a small town, and older boomers were the most likely to purchase in a suburb/subdivision.
At least 21% of Gen X buyers were the most likely to purchase a multigenerational home, and they were the most likely to purchase with the desire for a home in a better area.