In all the talk of rising real estate prices and ever-expanding new construction home footprints, a whole group of people are getting lost: the downsizers. Although traditionally, we think of downsizing as being a step people take after their kids leave home for good, a lot of Americans are considering downsizing a viable option these days.
According to Opendoor research, 62% of people surveyed have changed their idea of a dream home since the pandemic. For these people, their new dream home is smaller, simpler and quieter, even if that means moving to a place that won’t hold all their current stuff. In fact, Opendoor coined a term for this: simple-sizing: making intentional choices at home to simplify and embrace an easier-to-manage, more contented lifestyle.
Surprisingly, real estate agents say the motivation to downsize is not about money so much as it is about reclaiming time and energy.
From my experience, downsizing typically has little or nothing to do with finances and a lot to do with wanting a change in lifestyle, says Bryson Taggart, senior agent partnership manager at Opendoor in Phoenix. People loathe the constant upkeep of a home and don’t want to do the maintenance needed. It’s really more home maintenance than the actual size or square footage of a home that eventually gets people over the line to downsize.
However, when considering your finances, Taggart warns to look out for downsized homes with a lower monthly payment that may actually cost more because of extra amenities.
