The Case for Buying a Home, Even If You’re Set To Inherit One

First-time homebuyers have been stuck on the sidelines for years. Up against stubbornly high prices and mortgage rates, many have finally decided to sit this one out—at least until they inherit a home.

In what’s being described as the Great Wealth Transfer, baby boomers today own nearly $19 trillion in real estate, which they’re expected to pass on to younger generations over the next two and a half decades. And an overwhelming majority of Americans—as much as 66%—expect to or already have received an inheritance, according to a new survey from Choice Mutual.

While opting out of the housing market in anticipation of a future windfall might seem like a savvy move, experts warn it’s a risky bet. Inheritances are unpredictable—both in timing and outcome—and putting your housing future on hold can mean missing out on years of equity growth, tax advantages, and financial stability.

Or, as Shane Swanberg, CEO of Bridgehaven Homes, puts it: “Inheritance can be romanticized as a jackpot, but it's a waiting game with strings attached.”

Why waiting to inherit could cost you

The biggest risk for those banking on a home inheritance is the wait. Not just the emotional weight of your security on standby, but the financial toll of postponing ownership while home prices, mortgage rates, and rent continue to climb.

“Even if clients expect to inherit, the timeline is rarely certain—and homeownership lets them start building equity now rather than waiting for an unpredictable future event,” says Alexandra Gupta, a Brooklyn-based real estate broker.

That unpredictability plays out in countless ways. Parents may live far longer than anticipated or may need to sell their home to fund long-term care. If that seems like a far-off possibility, consider that retirees in 41 states and Washington, DC, are expected to outlive their savings, facing an average shortfall of over $115,000.

Wills can also change, relationships can shift, homes can get stuck in probate, and properties passed down to multiple heirs can become flashpoints for conflict.

Even when the inheritance does arrive, it may come with complications—like a tax lien, reverse mortgage, or unaffordable property taxes or insurance. These rising costs have 42% of younger Americans reporting that they feel financially unprepared to maintain an inherited home.

Then there are the logistical complications. 

“Many assume they’ll ‘just move into Mom and Dad’s place,’ but lifestyle needs, location preferences, or sibling dynamics often make that unrealistic,” says Gupta.

“Someday is not a financial plan,” emphasizes Swanberg.

Why buying a home now could be smarter than waiting to inherit

While it may seem redundant to buy a home when you expect to inherit one, doing so gives you more options down the line.

For one, equity takes time to build. While it used to take closer to five years to recoup your homebuying costs, it now takes closer to 10 years.

The earlier you buy, the more time your wealth has to grow, and the more you can benefit from real estate appreciation. That’s especially true in today’s housing market, where values have continued to hold even despite high interest rates. 

“If a young person buys a $350,000 house today with a 6% mortgage, in 10 years they might gain tens of thousands of dollars in equity as the house appreciates,” explains David Cohen, a real estate lawyer at Cohen Property Law Group. 

Then there are the tax benefits. Owning your primary residence opens up perks like mortgage interest deductions and, down the line, capital gains exclusions if you decide to sell.

These can add up to major savings for homeowners, and they’re benefits renters miss out on entirely. That’s to say nothing of the monthly rent payments that you might make while waiting for an inheritance. Over the course of a decade, those payments could easily surpass what you would have invested in a mortgage with no equity in return.

How to make the most of a home inheritance—even if you already own

The strongest case for buying a home, even if you expect to inherit one, is that owning a house doesn’t cancel out the value of an inheritance. It actually gives you more control over what to do with it.

If you already have a primary residence when you inherit a home, that second property becomes an asset. You might choose to turn it into a rental and generate monthly income, use it as a vacation home or seasonal retreat, or sell it and apply the proceeds toward paying off your mortgage or investing elsewhere.

“Owning a home is a form of diversification,” says Gupta. “Depending on a single future property can be risky—care costs, estate taxes, or market changes can reduce what’s ultimately inherited. Buying now gives clients both control and security.”

That’s especially important when inheritance is shared. If multiple siblings stand to inherit the same property, proactively discussing options—whether to sell, rent out, or keep it in the family—can help prevent conflict.

“When advising clients, I always stress upfront planning,” says Cohen. ”Families ought to spell out expectations clearly in estate documents.”

He recommends that families carefully consider living inheritances, which allow grantors to pass on assets while they’re still living.

But Swanberg warns that these aren’t a one-size-fits-all solution.

“Even so-called living inheritances, like adding a child to the deed ahead of time, can lead to legal and financial nightmares if that child accumulates debt, divorces, or gets sued,” he says.

Ultimately, a home inheritance should be a bonus—not the cornerstone of your housing security. Buying now gives you the flexibility to decide how to make the most of it when the time comes.

Should you buy a home if you’ll inherit one?

For many would-be buyers, the prospect of inheriting a family home someday feels like a reason to wait. But inheritance is a possibility, not a guarantee.

“If you are to inherit property, do not let this immobilize your own housing plans,” says Swanberg. “I always propose going in both directions: Discuss estate plans with your family, and plan independently for your own housing needs.”

Cohen agrees.

“I recently had a client in Dallas who bought a condo pending receiving an inheritance from an aunt out of state,” he says. “By the time the aunt passed away, the condo had appreciated by 20%, giving the client financial leverage that would not have existed if they had waited.”

If you're financially ready to buy—and you’ve found a home that meets your needs today—there’s little reason to postpone. You can still benefit from an inheritance down the line, but your housing stability doesn’t have to hinge on it.