Should You Pay Cash for Your Next Home?
A growing share of baby boomers are paying cash for their next home… but is it a good idea?
The numbers
The National Association of Realtors’ 2026 Home Buyers and Sellers Generational Trends report shows that the share of buyers who finance falls with age. Nearly half of buyers in their 70s, and more than half of buyers 80 and older, now pay all cash. Boomers made up 42% of all buyers this year, the largest generational share in the market.
What cash can cost you
The problem is that seniors who sell income-earning assets to pay cash for a home reduce their future interest income and liquidity… liquidity needed for healthcare, home repairs, emergencies and the like. Other considerations include the loss of the mortgage interest deduction and an inflation hedge, and there may be tax consequences to selling those appreciated assets.
Before you decide
Paying cash can still be the right call for some buyers. Talk with your financial advisor and tax professional before you sell investments to buy a home. If you’d like to compare paying cash with financing your next home, call me…
Originally published in The Trusted Advisor, October 2026.
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