Leave a Message

Thank you for your message. We will be in touch with you shortly.

A Smaller Home Could Be Your Best Option

February 22, 2023

Real Estate

A Smaller Home Could Be Your Best Option

Many people are reaching the point in their lives when they need to decide where they want to live when they retire. If you’re a homeowner approaching this stage, you have several options to explore. Jessica Lautz, Deputy Chief Economist and Vice President of Research at the National Association of Realtors (NAR), says:

“As we see the transition of the large Baby Boomer generation age into retirement, it will be interesting to see if they move in with their Millennial and Gen Z children or if they stay put in their own homes.”

Lautz lists two options: move into a multigenerational home with loved ones, or stay in your current house. Multigenerational living is rising in popularity, but it isn’t an option for everyone. And staying put may fit fewer and fewer of your needs. There’s a third option though, and for some, it’s the best one: downsizing.

When you sell your house and purchase a smaller one, it’s known as downsizing. Sometimes smaller homes are more suited to your changing needs, and moving means you can also land in your ideal location.

In addition to the personal benefits, downsizing might be more cost effective. The New York Times (NYT) shares:

“Many downsizers expect to improve their retirement income stream if their new home costs less than what their old house sells for. Lower utility costs, insurance and property taxes, and investment returns on the proceeds can also improve the bottom line.”

Being in a strong financial position is one of the most important parts of retirement, and downsizing can make a big difference.

A key part of why downsizing is still cost-effective today, even when mortgage rates are higher than they were a year ago, is homeowners' record-high level of equity. Leveraging your equity when you downsize can lower or maybe even eliminate the mortgage payment on your next home.

So, not only is the upkeep of a smaller home likely more affordable but leveraging your home equity could make a big difference too. Your local real estate advisor is the best resource to help you understand how much equity you may have in your current home and what options it can provide for your next move.

Bottom Line

If you’re a homeowner getting ready for retirement, part of that transition likely includes deciding where you’ll live. Let’s connect so you can understand your options and explore your downsizing opportunities.

 

(2023, February 22). A Smaller Home Could Be Your Best Option. Keeping Current Matters. https://www.mykcm.com/2023/02/22/a-smaller-home-could-be-your-best-option/?utm_medium=email&_hsmi=247192083&_hsenc=p2ANqtz-8Cm7-tO0Ab5bKT16-OB4qtEmuYZTq3iSfTOLOP8y6Ot7yqHWFhXe8bm-U-gHJ6igRyKDrKjNHlNT1cfgQH0XfVkB4VyA&utm_content=247192083&utm_source=hs_email

 

Explore Our Other Blogs

Stay Updated On Our Most Recent Blog Posts

How Much Money Do You Need to Buy a House in San Jose? Breaking Down the True Costs

Buyer's Real Estate Tips

How Much Money Do You Need to Buy a House in San Jose? Breaking Down the True Costs

Brian Ng  |  July 11, 2025

How Much Money Do You Need to Buy a House in San Jose? Breaking Down the True Costs
Beyond the Summer Rush Plan Your Late 2025Early 2026 San Jose Real Estate Strategy with a Realtor You Trust

Real Estate

Beyond the Summer Rush: Plan Your Late 2025/Early 2026 San Jose Real Estate Strategy with a Realtor You Trust

Brian Ng  |  July 11, 2025

Beyond the Summer Rush: Plan Your Late 2025/Early 2026 San Jose Real Estate Strategy with a Realtor You Trust
Interest Rate Realities (June 2025) What San Jose, Evergreen & Silver Creek Buyers & Investors Need to Know from a Trusted Advisor

Real Estate

Interest Rate Realities What San Jose, Evergreen & Silver Creek Buyers & Investors Need to Know from a Trusted Advisor

Thao Dang Pham  |  July 10, 2025

Interest Rate Realities What San Jose, Evergreen & Silver Creek Buyers & Investors Need to Know from a Trusted Advisor
Are Home Prices Dropping in San Jose? A Neighborhood-by-Neighborhood Breakdown

Real Estate

Are Home Prices Dropping in San Jose? A Neighborhood-by-Neighborhood Breakdown

Thao Dang Pham  |  July 10, 2025

Are Home Prices Dropping in San Jose? A Neighborhood-by-Neighborhood Breakdown
Is It Cheap to Live in San Jose? Unpacking Real Costs vs. Value

Real Estate

Is It Cheap to Live in San Jose? Unpacking Real Costs vs. Value

Brian Ng  |  July 9, 2025

Is It Cheap to Live in San Jose? Unpacking Real Costs vs. Value
Navigating San Jose’s Mid-2025 Real Estate A Trusted Realtor’s Guide for the Unsure in Evergreen & Silver Creek

Real Estate

Navigating San Jose’s Mid-2025 Real Estate A Trusted Realtor’s Guide for the Unsure in Evergreen & Silver Creek

Brian Ng  |  July 9, 2025

Navigating San Jose’s Mid-2025 Real Estate A Trusted Realtor’s Guide for the Unsure in Evergreen & Silver Creek

Let's Talk

You’ve got questions and we can’t wait to answer them.

FOLLOW US ON INSTAGRAM