Baby boomers sit on a mountain of real estate wealth — is it safe to count it toward retirement savings?

Baby boomers own the largest portion of housing value nationwide. Data from the Federal Reserve shows total real estate wealth in the fourth quarter of 2023 was $44.84 trillion, with boomers claiming an $18.65 trillion (42%) share. At the same time, homeowners’ equity totaled $31.86 trillion.

But with housing being so important, should this value be considered part of your retirement savings?

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After all, there are many reasons boomers might want to stay put in their homes, from being [locked in at ultra-low mortgage rates (or having their properties paid off completely) to the satisfaction of living in a domicile where they’re comfortable.

In reality, the answer to the question will depend on you as a person and in what context you’d raid your house as a piggy bank.

Real estate is often thought of as an investment, but a primary residence often comes with a bundle of carrying costs — what’s needed to hold and maintain it — such as property taxes, insurance and renovations. These costs chip away at the value you can squeeze out of your home.

Home equity, however, is tied with property value, and home prices have been increasing for some time.

Read more: ‘You didn’t want to risk it’: 80-year-old woman from South Carolina is looking for the safest place for her family’s $250,000 savings. Dave Ramsey responds

Assuming you want to remain a homeowner, you could pocket much of your equity by relocating to a place where housing and expenses are much lower. Per the Council for Community and Economic Research’s latest cost of living index, New York City is currently the most expensive urban area to live in, scoring 231 points, while Decatur, Illinois, is the least expensive at 78.8 points. Scores are based on the cost of housing, utilities, grocery items, transportation, health care and miscellaneous goods and services.

Switching to a rental property is another strategy to claim your equity as retirement money — though this will slowly siphon the equity you earned. Apartments in major cities can rent for thousands of dollars per month, and while you may no longer be paying property tax or be responsible for home maintenance, other existing expenses remain. Location and domicile size can greatly impact how long your cash will last.