Why Reverse Mortgages Are Soaring in Popularity Again
After stagnant growth in recent years, reverse mortgages jumped 6.23% in 2025 according to the National Reverse Mortgage Lenders Association. A report by Grand View Research projects the reverse mortgage market to reach $2.71 billion by 2030. Why are reverse mortgages making a comeback? And are current housing market trends contributing to this sudden increase? More Seniors to Borrow Some stark demographic numbers loom over the U.S. in the coming decades. The Census Bureau notes that seniors already outnumber children in nearly half of U.S. counties. A prior Census projection forecasts that they’ll do so nationwide by 2034. Home Equity and Cost of Living Both Rising Home prices skyrocketed during and after the pandemic, shooting up 54.9% from early 2020 to early 2025 per the National Association of Home Builders. That supercharged many seniors’ home equity. Inflation has also sent the cost of everything else soaring as well however, leaving many retirees house rich but cash-poor. Prices for everyday living including food, utilities, gasoline and health insurance have leapt, and retirees reliant on fixed incomes are seeing their dollar buy less, Reverse mortgages offer a solution to tap home equity for cash. Loss of Income Not every retiree made an intentional decision to leave the workforce. Rick Miller of CSI Wealth Management has seen plenty of clients lose either a primary or secondary source of income over the last year, pinching their cash flow. “Clients have asked me about reverse mortgages after losing a part-time job, or the premature death of a spouse and loss of their Social Security benefits,” Miller explained. And in a slowing labor market, finding a new retirement job doesn’t always happen quickly — if at all. Add a Property Cash-Free With enough equity in their existing home, retirees can buy a second home without a down payment using an HECM for Purchase loan. That can help them spend part of the year closer to family, or buy a vacation home. Walton adds that some seniors use reverse mortgages to build an accessory dwelling unit (ADU) for their existing home. “The homeowner can collect rent from the ADU while also avoiding a mortgage payment for a cash flow win-win. Some even move into the ADU and rent out the main residence for higher rent,” he noted. Pay for Age-in-Place Costs Three-quarters of older Americans said they want to age in place, according to AARP. Yet that comes with its own costs, from home modifications to caregivers and increasing healthcare bills. Reverse mortgages can help cover those costs, without the retiree having to pay cash. The reasons don’t end there, either. Americans are living longer but often retiring earlier, pinching cash flow. Many also help children or grandchildren with higher education expenses, which have themselves exploded over the last four decades. All the while, pensions have all but disappeared from the private sector, leaving many seniors facing the stark reality that they undersaved for retirement. It all makes for a perfect storm of rising reverse mortgage originations in this decade and beyond. G. Brian Davis
Unlock your home’s hidden potential and fund the retirement you deserve
For many Americans over 55, the family home is their most valuable asset. Yet, when planning for retirement, we often overlook the power of home equity. Untapped potential Unlocking that equity can help you enjoy a more comfortable lifestyle – whether it’s funding travel, home upgrades, aged care, or simply providing peace of mind. This isn’t about selling your home. It’s about using what you already own to create financial flexibility. Reverse mortgages and equity release products are designed for this purpose, giving retirees access to funds without leaving the home they love. How this equity can support your retirement: Fund Your Lifestyle: Whether you dream of traveling, renovating, or pursuing a new hobby, access to additional capital can make those plans a reality. Stay in Control: Property markets change, but having the flexibility to access your home’s equity—whether through refinancing or a reverse mortgage—helps you maintain financial security and peace of mind. Support What Matters: With extra equity, helping family members, investing in aged care, or securing financial freedom becomes more achievable. That growing equity isn’t just a number – it’s a powerful resource. Even modest increases in property value can make a big difference to your retirement plans. Now is the time Unlike traditional loans, a reverse mortgage allows you to access the equity in your home without selling or making regular repayments. You stay in your home, maintain ownership, and gain the financial flexibility to fund your retirement goals-whether that’s travel, home improvements, or aged care. If your home has grown in value – now might be the time to let that growth work for you. Visit www.HomeForLifeReverseMortgage.com for a free property value estimate and discover how much equity you could unlock to fund the retirement lifestyle you deserve. This information is general in nature and does not take into account your personal circumstances, objectives or financial situation. Before acting on any information and for legal, tax, or financial questions, you should consult with an appropriate professional.