Are You Frozen in Place?

Most of us say we want to age in place. According to a study by University of Michigan, 88% of people wish to age in their communities.

It makes sense: you know the house, the neighborhood, the routines. You’ve built memories there. And let’s be honest—moving is hard, both emotionally and logistically. For many, staying put feels like the most comfortable path forward. But here’s the thing: the oldest boomers will turn 80 this January. That milestone forces a bigger question—are we staying in place by choice, or because we’re frozen there?

Public Policy Isn't Helping

A recent analysis from Moody’s Analytics put a spotlight on the tax code as one big culprit. Back in 1997, Congress passed a law that let homeowners exclude $250,000 in capital gains ($500,000 for married couples) when selling their primary home. Sounds generous—until you realize those limits haven’t budged in almost 30 years.

In that time, home prices have soared. If those exclusions had kept pace, they’d be more than triple today. Instead, people in markets like California or Florida face tax bills well into six figures if they downsize.

One example: a solo ager with a house of $1 million dollars would face taxes on $750,000, and after her $250,000 exclusion, pay combined federal and state taxes of well north of $100,000, representing close to 20% of downsizing proceeds.

Faced with that math, most people stay put. It’s no wonder millions of empty-nesters are living in houses far bigger than they need, while young families are squeezed into apartments.

But “Aging in Place” is Not the Same as Having a Plan

I’ve seen this over and over. People say, “I’ll just stay in my house forever.” But have you thought it through? What happens if your mobility changes? How will you see friends if you can’t drive as much? Who will help with meals, home maintenance, or doctor visits? Staying put without a plan can lead to isolation and stress when life gets more complicated.

I recently met a couple in the San Francisco Bay Area, a market with high house appreciation, who had decided to stay in their longtime home. They loved the neighborhood and the memories it carried. But when we talked more deeply, they admitted they hadn’t really considered how they’d get to doctor’s appointments if they stopped driving, or what they’d do if one of them needed daily care. Their plan to “just stay” wasn’t really a plan at all—it was inertia. And inertia, as they began to realize, can be risky.

Where Place Planning Comes In

Place planning is about more than deciding to stay or go. It’s about thinking through scenarios and asking questions like:

• Can this home adapt to me if I need changes, like a first-floor bedroom or step-free entry?

• Am I in a community where friendships and activities are easy to keep up with?

• How close am I to healthcare, transportation, and daily essentials?

• What’s my financial strategy for making this work—whether I stay or eventually move?

It’s not about locking yourself into one choice. It’s about being ready for the choices life will bring. The best place planning conversations often include family, trusted advisors, or friends who can help you see blind spots. Talking it through early makes the eventual decisions less overwhelming and gives you more control.

Eventually, the Ice Will Crack

Policies change. Many economists believe Congress will eventually raise or index the capital gains exclusions. If and when that happens, millions of people who have been “frozen” will suddenly be faced with the decision: Do I stay, or do I go?

The catch is that attractive options may not be waiting. In some markets, retirement communities already have multi-year waiting lists. Downsizing options may be scarce. If you wait until the thaw to start planning, you could find yourself with fewer good choices.

Being frozen in place may feel safe, but it’s really just putting decisions on ice. Whether you want to stay, move, or simply keep your options open, the best time to plan is before you’re forced to.

So ask yourself: if the ice thawed tomorrow, would you be ready?