Why More Homeowners Are Choosing to Downsize Today

For many homeowners, retirement is no longer a distant milestone—it’s just around the corner.

The U.S. Census shows that nearly 12,000 Americans will turn 65 every day over the next two years. Even more striking: about 15% of older adults plan to retire in 2026, with another 23% expecting to retire in 2027.

If retirement is approaching, it’s the perfect time to start thinking about what you want the next chapter of life to look like.

Why Consider Downsizing?

Retirement offers a chance to reshape your lifestyle in a way that truly fits your needs. While income may change, your quality of life doesn’t have to shrink.

Most people aren’t looking for “less”—they’re looking for simpler:

• Simpler to enjoy

• Simpler to manage

• Simpler to maintain

  
  

Common Reasons Homeowners Over 60 Move

Research from the National Association of Realtors (NAR) shows that the primary reasons people over 60 move are lifestyle-driven, not financial. The most common motivators include:

• Living closer to children, grandchildren, or lifelong friends to spend more quality time together

• Moving to a smaller, more manageable home with fewer stairs and less maintenance

• Retiring and no longer needing to stay near work, which allows for greater flexibility

• Reducing monthly expenses, including utilities, insurance, and upkeep

  
  

  

  
  

  Ultimately, downsizing isn’t about losing space—it’s about gaining comfort, clarity, and control. It’s about ensuring your home supports the years ahead, not the ones behind you.

  
  

  How Home Equity Makes Downsizing Possible

  One of the biggest factors enabling downsizing today is home equity.

  Years of rising home values have left many long-term homeowners in a stronger financial position than expected. According to Cotality, the average homeowner now has around $299,000 in equity. Older homeowners often have even more, thanks to longer ownership.

  
  

  Over time, two key things typically happen:

  1. Your home’s value increases

  2. Your mortgage balance decreases—or is paid off entirely

  3. 
     

  These factors provide flexibility and options that many homeowners may not realize, even in the current market.

  Whether you’ve already retired or are planning for it soon, it’s a great time to think about what comes next. Leaving a home filled with memories can be emotional, but closing one chapter often makes room for another that’s equally fulfilling.

  
  

  Bottom Line

  Downsizing is about preparing for the future—on your terms.

  If retirement is approaching and you’re curious about what your home and equity could make possible, the first step isn’t selling—it’s exploring your options.

  A simple, no-pressure conversation can help you see what downsizing could look like and whether it’s the right move for you.