The pros and cons of downsizing
Talk of retirement often also brings talk of downsizing your home. For many people, it's a no-brainer that allows them to trim housing costs and make maintenance more manageable.
But others are not quite ready to let go of a large home — especially one attached to emotions and memories. While there may be unexpected benefits of downsizing your home to an apartment or condo, there are also disadvantages, such as less space for guests, entertaining and storage and the possibility of HOA fees.
As you consider whether to stay in your current home or move to a smaller house or condo, consider these pros and cons of downsizing your home.
The case for downsizing
- Trim expenses
- Spend more $ on hobbies or travel
- Invest extra $
- Reduce upkeep time
- Streamline clutter
The case for staying put
- Avoid moving costs
- Skip HOA or rental fees
- Keep space for storage, guests, entertaining
- Maintain emotional home connection
Not every retiree is opting to downsize:
New data shows that baby boomers are actually staying in their larger home longer and putting off retirement.1
Trying to decide what's best for you?
Here are some things to consider.
14% — Homebuyers ages 55–64 who downsized in 20202
59% — Baby boomers who downsized to save $3
The case for downsizing
- Trim expenses,
- Spend more $ on hobbies or travel,
- Invest extra $,
- Reduce upkeep time, and
- Streamline clutter.
The case for staying put
- Avoid moving costs,
- Skip HOA or rental fees,
- Keep space for storage, guests, entertaining, and
- Maintain emotional home connection.
Downsizing and dollars
- If you want to stay put — pay off your mortgage to free up dollars for upkeep and maintenance,
- If you want to downsize — factor any association fees or expenses into your budget, and
- Extra dollars from either choice — boost retirement savings.
For more downsizing pros and cons, visit statefarm.com/simple-insights
1https://www.usatoday.com/story/money/2019/05/21/home-buying-many-boomers-choose-age-place-and-not-move/3698390002/
2https://www.nar.realtor/sites/default/files/documents/2020-generational-trends-report-03-05-2020.pdf
3https://www.homes.com/blog/the-upside-to-downsizing/
