Should I Consider Downsizing My Home?

Knowing when to downsize your home can help you save money and time while avoiding the feeling of being an empty nester. Those who don’t downsize in time find their homes have become too large to manage, and too much maintenance they can’t keep up with. 

When Should You Consider Downsizing?

Many people who consider downsizing their home are those of retirement age because their children have left the house to start their own families, so they don’t need five bedrooms anymore. Unfortunately, many people find it difficult to commit to downsizing for a variety of reasons. Here’s when you should consider downsizing your home. 

Your monthly housing expenses are out of control

If your monthly housing expenses have risen above 30%, then it’s time to consider downsizing. Your monthly budget that’s spent on housing should never be more than 30%. It can increase for a variety of reasons, such as retiring or losing a job. However, this might mean it’s time to move out.

When you’re still working, housing costs are typically comfortable for you. However, retiring means you won’t be bringing in as much money as before, and your housing costs can get out of control if you don’t have enough in your savings or checking accounts to cover additional costs. 

Your budget leaves little leftover for savings

Even if you can comfortably afford your house after retirement, you might find that you’re unable to save as much money as you’d like to live comfortably or pay for emergencies. If you envision yourself traveling after retirement or picking up new hobbies, then you’re going to need to find money that can support it. You can downsize your home and purchase a smaller house for less money so you know you have enough money to do exactly what you want after retirement. 

Unfortunately, many people make the mistake of renting instead of buying their next home because they want to move out and have as much money as possible for a short amount of time. However, when you rent instead of buying your new home, you’ll have to consider your monthly rent costs. Landlords choose rent rates based on several factors, including what other landlords in the area are charging. 

Instead of renting, choose to purchase a home that’s worth less money than your current house. At the end of the day, you could be earning over $100,000 by selling your house and buying a different one. 

You no longer do home maintenance

Every house requires maintenance, but it can be difficult to keep up with it when you have a large house. When small tasks like painting the walls to cover up dents and dings seem like a big task, it might be time to downsize so you have a more manageable house.

Your home doesn’t offer features that help you age in place

Aging in place is when someone chooses not to go into a senior living facility and decides to stay in their own home. While this is ideal for most people, you might have to purchase a new home to age in place because your current home doesn’t have the features you need. If you’re considering downsizing, work with a realtor who can help you find homes that promote aging in place, such as homes with walk-in tubs and hallways wide enough for a walker, cane, or wheelchair.

You don’t use half the space

At some point, your house probably felt the right size or even too small, which is why you invested so much money in your kitchen remodel and knocked down a wall to have a more open floor plan. However, now that the halls are empty and most of the bedrooms are only used for storage, it seems like the size of your house is unnecessary for your needs. 

Instead, you can purchase a smaller house and put everything you don’t use daily in storage so you have just enough space without feeling like your house is too big. 

You want to save money

Because you’re not using all of the space you used to, you’re using energy you don’t need. Heating and cooling rooms nobody goes in are a waste of money and completely unnecessary. Instead, you can choose to downsize and only spend money on electricity or where you need it. 

When Should You Not Downsize?

While there might be plenty of reasons to downsize, there are tons of reasons not to move homes. Some reasons to not downsize your home are:

• You want to age in place and have already done the necessary renovations to make it easier. 
• You have precious memories in the home
• Your family frequently spends the night
• You enjoy the size of your home
• You want your home to stay in the family
• You plan on giving your house to a family member in your will

No one can choose to downsize for you. Ultimately, if you don’t want to downsize your home, then you shouldn’t be pressured into it because you’re getting old and the kids have moved away. The choice is completely yours, and it’s up to you to determine what’s best. 

Final Thoughts

Downsizing can be a difficult choice for those who don’t like change, but it can also be incredibly beneficial for those who are getting old and want a smaller home to maintain. If you choose to downsize, make sure you find a home that allows you to still invite family over for the night if you don’t want to be alone.

It isn’t always necessary to downsize. However, moving to a smaller home can help you save on bills, make household chores more manageable, and allow you to design your home the way you want it without having to worry about kids or anyone else. 

Matt Casadona

Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music.