Downsizing was once considered a fairly typical part of retirement. The kids moved out, the family home became more space than necessary, and eventually a smaller house or condo made sense. But according to a new study, more older homeowners are choosing to stay put, and the housing wealth they currently hold shows how significant that decision could be for the broader housing market.
A July 2026 study from Everest Mortgages examined homeowners aged 65 and older across the country, including how many own homes, the value of those properties, and the equity they have accumulated. The findings show that older Americans control a substantial amount of residential real estate, particularly in some of the country’s most expensive housing markets.
Older Homeowners Are Holding Onto Valuable Real Estate
California provides the clearest example. Homeowners age 65 and older collectively own an estimated $2.7 trillion worth of property in the state, according to the research.
Florida’s older homeowners hold another $1.3 trillion in property, while those in New York account for nearly $919 billion. Washington and Massachusetts also have hundreds of billions of dollars worth of real estate owned by people 65 and older.
That means a significant amount of the country’s housing wealth remains in the hands of older homeowners.
Many Retirees Have Considerable Equity Tied Up in Their Homes
There can also be a substantial financial incentive to remain in a home you’ve owned for years. In Hawaii, homeowners age 65 and older have an average of about $471,000 in home equity, the highest amount in the Everest Mortgages study.
California follows at roughly $349,000, while older homeowners in Washington, D.C., average about $262,000. Massachusetts and Washington round out the top five.
For these homeowners, downsizing isn’t simply a matter of moving into a smaller property. It can mean deciding whether to leave a home where they’ve accumulated significant wealth.
Older Americans Represent a Significant Share of Homeowners
The study also shows just how large a presence older homeowners have in some housing markets. In Hawaii, 45.5% of homeowners are 65 or older, while in Florida, the share is 40.2%.
Older homeowners also account for more than a third of homeowners in California, Massachusetts, New York, Oregon, and Rhode Island, according to the research.
When such a large percentage of homeowners are older adults, whether they choose to sell or stay can affect how many existing homes return to the market.
Staying Put Could Keep Some Homes Off the Market
The shift away from traditional downsizing could contribute to a housing bottleneck. If older homeowners remain in houses they might once have sold, fewer existing properties become available for younger households looking to buy.
That is particularly relevant for family-sized homes. A retiree may have little reason to give up a familiar home with substantial accumulated equity, while a younger family may be searching for exactly that type of property.
