Senior Home Equity At Record High As Trump Opposes Price Cuts

President Donald Trump has drawn a firm line on housing policy — he doesn’t want prices to fall, even as affordability concerns dominate voter surveys and construction slows nationwide.

“I don’t want to drive housing prices down. I want to drive housing prices up for people that own their homes, and they can be assured that’s what’s going to happen,” Trump told his Cabinet on Jan. 29.

The stance prioritizes existing homeowners who have benefited from years of appreciation. It also departs from calls by economists, builders and local officials who argue that boosting supply is essential to easing affordability concerns.

“You have a lot of people that have become wealthy in the last year because their house value has gone up,” Trump said. “And you know, when you get the housing — when you make it too easy and too cheap to buy houses — those values come down.”

Recent data shows how much wealth is at stake for older Americans.

Housing wealth held by homeowners age 62 and older climbed 1.9% in the third quarter of 2025 to a record $14.66 trillion, according to the Reverse Mortgage Market Index, a measure created by the National Reverse Mortgage Lenders Association (NRMLA) and RiskSpan.

The reading of 511.99 marked the highest level since the index launched in 2000 and surpassed the previous record set in the second quarter.

An estimated 2% rise in home values added roughly $295.4 billion in senior housing equity during the quarter, offset slightly by a 1% increase in mortgage debt of about $22.8 billion.

“The latest release of the RMMI underscores the extraordinary level of housing wealth held by older Americans,” NRMLA President Steve Irwin said in January. “At a time when inflation pressures and the fear of outliving one’s retirement savings remain top concerns for retirees, home equity stands out as a powerful — yet often underutilized — financial resource.

“When incorporating responsibly into a broader retirement strategy, this wealth can help seniors offset rising costs, reduce income shortfalls and gain greater peace of mind about their long-term financial security.”

Midterm stakes, generational divide

Trump’s emphasis on rising property values could solidify support among older voters, who typically turn out at higher rates in midterm elections. In 2024, 81% of Trump voters were homeowners, according to a recent Associated Press (AP) report.

But Republican strategists caution that younger voters — many struggling to buy into tight housing markets — were critical to Trump’s winning coalition.

“The under-40 group is the most important right now — they are the ones who put Trump in the White House,” Brent Buchanan of Cygnal, a GOP-aligned polling firm, told AP. “Their desire to show up in an election or not is going to make the difference in this election. If they feel that Donald Trump is taking care of the boomers at their expense, that is going to hurt Republicans.”

Single-family construction permits have fallen 9.4% over the past year to an annual rate of 876,000, according to the U.S. Census Bureau.

Hidden risks for older sellers

Even as senior housing wealth reaches records, research suggests older Americans may not always maximize returns when they sell.

A recent study by the Center for Retirement Research at Boston College found that sellers in their 70s and older consistently receive lower returns than younger homeowners.

An 80-year-old seller earns about 0.5% less per year than a 45-year-old. Over an average 11-year holding period, that translates into proceeds roughly 5% lower — about $20,000 on a $400,000 home.

The analysis linked 10 million repeat home sales from a national property database with voter registration records to determine sellers’ ages, covering about 40% of all transactions nationwide.

Listings from younger owners were more likely to mention upgrades such as new roofs or remodeled kitchens. Homes sold by the oldest owners more often included terms like “as-is” or “fixer-upper.” Poor upkeep accounted for about 10% of the return gap.

Sales strategy also matters.

Sellers age 76 and older were 2.3% more likely to sell off the multiple listing service (MLS) and 2.7% more likely to sell to investors than middle-aged sellers. Both approaches are associated with lower returns because they limit exposure or prioritize speed over price, the study showed.

In Illinois, changes by Midwest Real Estate Data to increase transparency around private listings reduced off-MLS sales and narrowed the return penalty for older sellers from about -0.8% per year to -0.4%, researchers found.