The trend of “micro-retirement”—short sabbaticals or gap years during prime working years—is gaining momentum among younger generations, who are shaping their working lives very differently.
In fact, a recent survey from SideHustles.com found that in 2025, 1 in 10 Americans planned to take a micro-retirement.
Yet, while Gen Z is spearheading this movement in the name of work-life balance, the financial realities of homeownership make it far trickier than it sounds.
“Micro-retirement could definitely pose a challenge for homeowners, not just because homeownership comes with lots of costs, but because it often comes with unexpected costs,” says Adam Hamilton, co-founder of real estate accounting software REI Hub.
“A pipe bursts. A tree falls on your roof. Your property assessment came in and increased your property taxes significantly. When you don’t have an income, it can be very difficult to finance these sudden changes that are unavoidable as a homeowner.”
What micro-retirement means for today’s workers
Micro-retirements are short-term breaks from work to focus on travel, mental health, or passion projects. According to its proponents, the approach can help avoid burnout and improve mental health. It is also directly connected to Gen Z’s focus on wellness and flexibility.
Long gone are the nine-to-five jobs that come with only a few vacation weeks for younger Americans who want to prioritize well-being above most other aspects of life.
Underscoring this cultural shift, the SideHustles.com survey found that 57% cite mental health as the main reason for a micro-retirement. Additional reasons include travel/life experience, with 52%; work stress, with 47%; creative/personal projects, with 29%; and reevaluating career/life, with 28%.
Jared Navarre, CEO of consulting and systems firm Keyni, says the idea of micro-retirement didn’t gain traction until recently because it simply wasn’t possible.
“It’s tied to the broader cultural luxury of being able to prioritize mental health. My dad worked 12- to 16-hour shifts in Alaska, seven days a week, in freezing conditions—he never had the option to even consider ‘taking a year for himself’,” Navarre says. “For younger workers, the notion that you can, or perhaps even should, pause your career for balance is brand new.”
The financial reality check for homeowners
Still, for homeowners who dream of taking micro-retirements, the reality can be very different, and there could be some dire financial consequences if they don’t plan well.
“The concept has the most appeal to younger workers who may have high lifestyle flexibility needs. But there’s one little factor that some may overlook: Bills don’t take vacations,” says Eric Croak, CFP and accredited wealth management advisor, president of Croak Capital.
Navarre agrees, illustrating the point with an example of what he calls a “fairly average U.S. home”—a $400,000 home, requiring a 20% down payment.
“On a 30-year fixed mortgage at 6.5%, the monthly principal and interest payment comes to about $2,022. Add in property taxes at roughly 1.25% ($5,000 a year) and homeowners insurance around $1,500, and you’re looking at a total monthly housing cost of about $2,560,” he says, adding that when you multiply that by 12, and a year long ‘micro-retirement’ would require more than $30,700 just to keep the roof over your head.
“That estimate is before paying for groceries, utilities, health coverage, or travel,” he adds.
It’s important to note that these costs can also be higher under certain circumstances, such as if the homeowner made a smaller down payment, as private mortgage insurance (PMI) could then be required, ballooning monthly payments.
Jay Zigmont, Ph.D., CFP, founder of financial planning firm Childfree Trust, echoes the sentiment, noting that you must clearly understand your expenses before taking a micro-retirement.
“Here’s how I look at it for my clients: Before taking a micro-retirement or sabbatical, I want them to be out of debt and have a fully funded emergency fund. Then we calculate their everyday expenses for the planned time period,” Zigmont says, adding that they also need to account for any extra spending on travel or other adventures they may want to take.
“The result is that they need to set aside a considerable amount of money for a micro-retirement as it is similar to people going into retirement in general, as you tend to spend more in your first few years of retirement as you check things off your bucket list,” he adds.
Why most micro-retirees aren’t homeowners anyway
The flexibility to take time off often requires a less-expensive living situation, such as living with family, having roommates, or renting instead of owning a house.
And Gen Z Americans represent only a meager 3% of homeowners in the U.S., according to the 2025 National Association of Realtors® Home Buyers and Sellers Generational Trends study. This represents the smallest share of any generation alive today, so it’s not surprising that the micro-retirement trend is more appealing to that generation.
The financial reality of owning a home doesn’t end when all the paperwork is signed. There are many unexpected expenses as well, something that Gen Zers who are homeowners experience a lot. A recent Insurify survey found that 90% of Gen Z homeowners underestimated these costs, including maintenance and repairs or insurance premiums.
Against this backdrop, Croak says it is no surprise that many micro-retirees are renters, not homeowners. Rent is a fixed expense, but that doesn’t mean you can’t take a break from it or lower the cost with a sublease or a change in location, he says.
On the other hand, he adds that homeowners have less flexibility, and simply stopping payments can lead to foreclosure and credit problems that last for decades.
“In short, the mortgage puts a financial straitjacket on them that runs counter to the flexibility micro-retirement marketing claims. This is also why the concept works best with a low-cost, debt-free, or subsidized housing situation. Otherwise, you are only renting your freedom with interest,” Croak says.
He adds, however, that the devil is in the details, so if you are going to give it a shot, at least do a three-month dry run of living on the micro-retirement budget while still employed.
“This will bring budget shortfalls to light well before it is too late,” he says.