Why More Homeowners Are Choosing to Downsize as Retirement Approaches

For many homeowners, retirement is no longer a far-off milestone. It’s quickly becoming a real and immediate chapter of life.

According to Realtor.com® and the U.S. Census, nearly 12,000 Americans will turn 65 every single day over the next two years. And a significant share of them are already planning their exit from the workforce—about 15% expect to retire in 2026, with another 23% following in 2027.

If you’re part of that group, now is the time to start thinking about how—and where—you want to live next.

Why Downsizing Makes Sense Right Now

Retirement often comes with a financial shift, but that doesn’t mean you’re aiming for a smaller life. What many homeowners actually want is a simpler one.

One that’s easier to enjoy.Easier to manage.Easier to maintain.

Downsizing isn’t about sacrifice. It’s about designing a lifestyle that fits the years ahead, not the years behind.

What’s Driving Moves for Homeowners Over 60

Data from the National Association of Realtors® (NAR) shows that homeowners over 60 aren’t moving to time the market or chase record-high prices. Their reasons are far more personal—and practical:

• Wanting to be closer to children, grandchildren, or long-time friends

• Looking for a smaller, more functional home with fewer stairs and less upkeep

• Retiring and no longer needing to live near work

• Reducing monthly costs like utilities, insurance, and maintenance

Across the board, the motivation is the same: comfort, convenience, and peace of mind.

The Financial Advantage Many Homeowners Don’t Expect

One of the biggest reasons downsizing is more achievable than people think comes down to equity.

According to Cotality, the average homeowner today has roughly $299,000 in home equity. For longtime homeowners—especially those nearing or in retirement—that number is often even higher.

Why? Because over time:

• Home values increase

• Mortgage balances decrease—or disappear entirely

That powerful combination creates flexibility. It can open doors to buying a smaller home outright, lowering monthly expenses, or freeing up cash for travel, healthcare, or simply enjoying retirement without financial stress.

Closing One Chapter to Open Another

Leaving a home filled with decades of memories isn’t easy. But for many homeowners, downsizing isn’t an ending—it’s a transition to a new season that offers more freedom and less responsibility.

Whether you’ve already retired or are planning to soon, it’s never too early to explore what your options look like.

Downsizing is about preparing for what’s next—on your terms.

If retirement is on the horizon and you’re curious about what your current home and equity could make possible, the first step isn’t selling. It’s understanding your choices.

A simple, no-pressure conversation with a real estate professional can help you see whether downsizing makes sense for you—and what that next chapter could look like.