Buying a Home in Your 40's? Here's What You Need to Know
Have you celebrated your 40th birthday? Then you’ve probably found your stride in life and, hopefully, have squirreled away some savings. That makes it a great time to either buy your first home—or think about upsizing.
And you’re not alone. People aged 41 to 55—known as Gen X—made up 24% of homebuyers over the past year, according to a report from the National Association of Realtors®. And 22% of them were first-time buyers.
“Life changes as people age, and homebuyers are no exception,” says Danielle Hale, chief economist of Realtor.com®. “While some priorities when buying a home are fairly consistent across ages—things like wanting a garage, a quiet location, and an updated kitchen—others can change over time.”
So if you’re in your 40s and thinking about buying a new home, here are the main things to consider.
What’s driving you to buy now?
“The most important considerations regardless of homebuyer age are personal,” says Hale. “Ask yourself if you can commit to being in a new home for the three to seven years that it will take to make the purchase financially advantageous.”
Once you’ve determined you can commit to buying a new home, you can figure out what you want that home to be.
Consider your family and career
“In your 40s, you’ve settled into your life and routine, and you’re able to plan a bit further down the line for the most part,” says Trevor Halpern, founder of Halpern Residential at North&Co. in Phoenix. “These are powerful years where you’re still young enough to strive and dream, but old enough to keep those dreams grounded in reality.”
The biggest reality check when it comes to a 40-something’s home purchase? Children and jobs.
Most Gen X homebuyers have at least one child living at home. And a change in family status—such as marriage, divorce, or the birth of a child—were the top reasons Gen Xers purchased a home last year, according to the NAR report.
So if you’re looking for a new home, start your search in a good school district—that’s also near your job. With more offices opening up for hybrid working arrangements, you don’t want to be commuting for hours, even if it’s just a few days a week.
