For a growing number of Americans, retirement is no longer a distant prospect, but a rapidly approaching reality.
Why the Shift?
As more people enter their retirement years, a significant trend is emerging: downsizing. The National Association of Realtors® (NAR) has identified four key lifestyle factors driving this change. These include a desire to be closer to family and friends, a preference for smaller, more manageable homes, the freedom to relocate away from the workplace, and a need to reduce monthly expenses.
Downsizing isn’t necessarily about reducing one’s standard of living, but rather about gaining control and simplifying life for the years ahead. This is becoming increasingly financially feasible for many homeowners.
Home Equity as an Enabler
According to Cotality, the average homeowner currently possesses approximately $299,000 in home equity. For older Americans, this figure is often even higher due to longer periods of homeownership. Over time, home values tend to increase while mortgage balances decrease, creating a favorable financial position for those considering a move.
While leaving a long-held home can be emotionally challenging, many are finding that downsizing allows them to embrace a new chapter with financial security and peace of mind.
Frequently Asked Questions
Why are people over 60 moving?
The National Association of Realtors® (NAR) finds the top four reasons are to be closer to family, to have a smaller home with easier upkeep, to move away from the office after retirement, and to reduce monthly expenses.
What is helping many homeowners downsize?
Home values have grown over the years, and many homeowners have built substantial equity in their homes, while likewise reducing or eliminating their mortgage balance.
What percentage of older Americans are planning to retire in the near future?
Approximately 15% of Americans aged 65 and over are planning to retire in 2026, with an additional 23% planning to retire in 2027.
As more homeowners consider their options for retirement, what lifestyle changes are you anticipating making in the future?
