Why More Homeowners Are Choosing to Downsize as Retirement Approaches
For a growing number of homeowners, retirement is no longer a distant milestone — it’s right around the corner.
According to Realtor.com and U.S. Census data, nearly 12,000 Americans will turn 65 every single day for the next two years. Even more telling, recent data shows that approximately 15% of older Americans plan to retire in 2026, with another 23% expecting to follow in 2027.
If you’re starting to think seriously about retirement, it may be time to consider what you truly want this next chapter of life to look like.
Why Downsizing Makes Sense
Retirement often brings financial adjustments. But that doesn’t mean life has to feel smaller — in fact, many homeowners are discovering the opposite.
What most people want isn’t “less.”
They want life to feel:
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Easier to enjoy
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Easier to manage
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Easier to maintain
Downsizing isn’t about sacrificing space. It’s about gaining simplicity, flexibility, and peace of mind.
The Real Reasons People Over 60 Are Moving
Data from the National Association of Realtors (NAR) shows that lifestyle — not market timing — is driving these decisions. The top reasons homeowners over 60 choose to move include:
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Being closer to children, grandchildren, and lifelong friends
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Wanting a smaller, more functional home with fewer stairs and lower maintenance
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Retiring and no longer needing to live near the office
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Reducing monthly expenses such as utilities, insurance, and upkeep
The common thread? Control.
Homeowners are choosing homes that better support the years ahead — not the years behind.
The Financial Advantage Many Don’t Realize They Have
One major reason downsizing is more attainable than many expect comes down to equity.
According to Cotality, the average homeowner today has approximately $299,000 in home equity. For older homeowners who have lived in their homes for decades, that number is often significantly higher.
When you’ve owned a home for many years, two powerful things tend to happen:
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Your home value appreciates over time.
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Your mortgage balance decreases — or is paid off entirely.
That combination creates real flexibility. Equity can open the door to purchasing a smaller home outright, significantly lowering monthly expenses, or even boosting retirement savings.
Turning the Page with Confidence
Leaving a home filled with memories isn’t easy. But for many, downsizing isn’t about closing a chapter with regret — it’s about opening a new one with intention.
Retirement is a transition. Your home should support that transition, not complicate it.
Bottom Line
Downsizing is about positioning yourself for what comes next — on your terms.
If retirement is approaching and you’re wondering what your current home (and your equity) might make possible, the first step isn’t listing your house. It’s understanding your options.
A simple, no-pressure conversation with a real estate professional can help you explore what downsizing could look like — and whether it aligns with your goals for the years ahead.