The 5 best reasons to downsize your home

Key Insights

• Downsizing can save you money, with the potential to eliminate your mortgage payment and decrease utility spending.
• A smaller house can bring bigger opportunities. Free up your space and time with a more manageable property.
• Start your downsizing journey now; in many areas, sellers are still seeing strong activity.

As the market continues to favor sellers, and baby boomers enter retirement, it’s no surprise that the nation’s seniors are beginning to sell their homes in larger numbers. The 2025 National Association of REALTORS® (NAR) Home Buyers and Sellers Generational Trends report stated that from July 2023 to July 2024, sellers over the age of 55 accounted for more than half of the homes sold across the country.

Below, we explore five reasons downsizing to a smaller home can be the best plan of action for homeowners holding on to expensive (and expansive) homes they’ve owned for decades.

1. Buy your next home in cash (and be mortgage-free!)

Some homeowners find that by downsizing, they can earn enough at closing to buy a less expensive home in cash and end up mortgage-free in a new abode, depending on market conditions and home equity. NAR indicates this is a very common route for those nearing retirement with nearly one-third of recent home sales done in cash.

Not only will downsizing homeowners save money by decreasing — or eliminating — their monthly mortgage payments, but they may spend less on utilities in a smaller space. It’s a win-win situation for any wallet.

2. Minimize your upkeep, maximize your time

Larger family homes can take up several hours each week to keep up, and those who raised families may find that the three-story home they needed in the past is impractical now. Moving forward, a more manageable property can reduce the hours homeowners spend maintaining their homes and free up leisure time to enjoy the space.

NAR’s data supports this, showing that the median size home sold by those over the age of 60 was between 2,000-2,100 square feet. That same age group purchased homes that were between 1,800 and 2,000 square feet, resulting in a reduction of anywhere from 100 to 300 square feet.

3. Move closer to family and friends

While sellers of this age do tend to downsize, it isn’t always their primary reason for selling. Instead, 36% of sellers aged 70 to 78 reported that proximity to family and friends was their number one motivator for selling and moving. During this season of life, situate yourself near those who are most important to you. And consider these additional top reasons for moving:

• 16% state their home has become too large.
• 9% state they are moving due to retirement.
• 9% state that the upkeep of the home is too difficult due to health or financial limitations.

4. Embrace a long-term solution

Last year, NAR reported that 19% of buyers over the age of 60 purchased senior-friendly homes or units in planned communities. In many cases, this age group is not only planning for the “now,” but they are also planning to remain independent and accommodated for the upcoming years of their lives.

One-level homes with open floor plans, larger rooms and wider hallways prove to be great for entertaining guests, and they provide wheelchair and senior accessibility for the future. Read more on how those over 50, and their families, are planning for retirement housing.

5. Gain freedom and flexibility

Last, and perhaps most importantly, homeowners who downsize are acknowledging that it’s finally their time to choose. Among last year’s sellers between the ages of 70 to 78, more than 38% had lived in their homes for more than 21 years. By selling their home, they can regain the flexibility they may have given up as they previously pursued career and family aspirations over their preferred property.

Whether it’s finally time for a home on the water, a condo in the city or something else altogether, downsizers may be excited that they finally get to call the shots.

Ready to move forward and downsize?

If you’re preparing to downsize, one of our 2,000+ local experts can assist you in the sale of your family home. Contact Edina Realty or your agent to learn how today’s market favors sellers and discuss your plan moving forward after the sale of your house.

For even more seller tips, download The Ultimate Guide to Selling Your Hometo find out everything you need to know about the home-selling process.