Mortgage payments have doubled, prompting many Americans to make major adjustments in their retirement plans, including moving abroad.
4.2 million Americans, a record-breaking number, are turning 65 in 2025 and are expected to retire. Many are hoping to retire somewhere sunny and warm. However, the dream of an ocean-view condo or a beachside house might be far beyond reach.
The housing market has flipped: buying a home once costs less than renting, but now renting is cheaper. New research from InvestorsObserver reveals that 39 metro areas have shifted to favor renters, instead of buyers.
Popular Retirement Spots May No Longer Be Ideal
A recent article rated the best places to retire in 2025, considering public healthcare, affordable housing, transportation, green space, community, and taxes.
However, according to InvestorsObserver, while Florida ranks first in the article, it might not be the perfect destination for buying a house with your retirement savings.
For example, Miami experienced a remarkable transformation in its housing market dynamics, with a buy-rent gap increase of 92% points.
Average rent rose nearly 40%, from $1,946 to $2,721, but mortgage payments jumped more than 200%, from $1,393 to $4,449.
“For people who’ve saved for decades, this reversal is shocking,” said Sam Bourgi, a financial analyst at InvestorsObserver. “After years of hard work, many retirees find that buying a home is out of reach. The next step is to rethink their retirement plans completely.”
The Widening Gap, as Homeownership Drifts Further Away
Nationally, the overall average gap flipped from –7% in 2021 (favoring buying) to +53% in 2025 (favoring renting), and in the 10 highest-gap metros, it tripled, rising from around 35% in 2021 to about 110% in 2025.
According to data from Redfin, home prices were still rising in September 2025. As of September 2025, median U.S. home prices were up 1.7% year-over-year to $435,295, and a quarter of homes sold above asking price.
Historically, home prices have risen much faster than incomes. In 1960, the median home cost $11,900 compared with a median income of $5,600 – a price-to-income ratio 2.1. By 2019, that ratio had climbed to 3.5.
Finding suitable and affordable housing that older seniors can afford to retire in is difficult since mortgage and house prices rise disproportionately to wages.
In 2023, older adults comprised over 17% of the total US population, and this number is expected to reach over 22% by 2050, meaning that finding affordable housing will be even harder.
“Younger generations, too, should reconsider assumptions about homeownership and savings. Cohousing, home sharing, or age-restricted communities could become the new normal,” said Bourgi.
Is Retirement Only for the Rich?
Increasing housing expenses combined with dormant retirement savings are prompting entire generations to question whether retirement is still achievable.
More than 19 million older adult households lack enough income to meet basic living expenses. Additionally, roughly 34 million households cannot withstand a significant crisis like widowhood, serious illness, or long-term care needs.
According to data, U.S. adults aged 18 and older worry they’ll have to return to work after retiring. Retirement now feels like a privilege reserved for the wealthy.
Promises of a Peaceful and More Affordable Life Abroad
One emerging idea for retirement, and a growing trend, is relocating abroad. 34% of Americans are open to moving to another country to enjoy a lower cost of living in retirement. Many international destinations provide affordability, more accessible healthcare, and a slower, more peaceful lifestyle.
Still, relocating abroad requires careful planning: from visa and insurance requirements to understanding local healthcare systems. For example, countries like Spain and France require proof of health insurance before granting residency.
For some, moving abroad offers what’s become elusive at home: an affordable, peaceful retirement.
“This means that instead of facing tough choices, struggling to afford basic housing in America, and having the uncertainty of financial stability, they join the growing movement of Americans spending their retirement abroad, where money stretches further and their retirement dreams and peaceful life stay achievable,” explained Bourgi.
ABOUT SAM BOURGI
Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including CBN, KFYR TV, and ABC30, and is often quoted by such media outlets as the SF Chronicle and MSN.
ABOUT INVESTORS OBSERVER
InvestorsObserver is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.
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