There's a persistent myth that most seniors eventually sell and move into a smaller place or a facility. The data tells a very different story, and it's especially true in California, where selling carries a real financial cost most homeowners in other states don't face. According to Harvard's Joint Center for Housing Studies, the homeownership rate among Americans 65 and older is 78.6%, one of the highest of any age group nationally.
In California, the incentive to stay is even stronger: a Prop 13 tax basis that resets on sale, and coastal and metro home values that make "moving down" often mean paying more, not less. If you're planning to stay in your Pacific Palisades, Santa Monica, or La Jolla home, and the numbers say most California homeowners in your position are, the real question isn't "should I sell?" It's "what do I need to make staying here work for the next 10, 15, or 20 years, without giving up a tax basis I can't get back?"
Licensed in California: This is educational content, not financial advice. Consult with a qualified financial advisor about your specific situation. David Rider, California license #CA-DOC200787 (DFPI) ยท NMLS #200787.
Frequently asked questions
Why is aging in place especially common in California compared to other states?
Beyond the general national trend, California's Prop 13 property tax structure means selling and buying again typically resets your tax basis to current market value, a significant, permanent cost that gives longtime owners a strong incentive to stay put.
If I want to modify my home to stay longer, does that require selling equity or taking on payments?
Not necessarily. Home-equity tools like a reverse mortgage line of credit can fund modifications without a sale and without mandatory monthly payments.
Does this apply to both longtime coastal owners and more recent high-value buyers?
Yes, the underlying principle (staying rather than selling preserves both your home and, where applicable, your tax basis) applies regardless of when you purchased.
Is there a downside to staying versus selling that I should weigh?
Every situation is different, home maintenance costs, accessibility needs, and proximity to family all matter. A real conversation about your specific numbers is more useful than a general rule.
How do I start planning instead of just assuming it'll work out?
A short conversation reviewing your finances, your home, and your goals is the starting point.
