Downsizing? Here’s a Smart Trend Worth Considering
Thinking about downsizing - whether to lower your expenses, be closer to family, or simply make life easier? There’s a growing trend that might make the move even more appealing: more and more homeowners are purchasing their next property outright, without taking on a new mortgage.
If you’ve owned your home for some time, chances are you’ve built up significant equity. That means buying your next place with no mortgage, and no monthly housing payment, may be more within reach than you realize.
According to recent Census data analyzed by ResiClub, over 40% of U.S. homeowners now own their homes free and clear the highest share on record. Put simply: 4 in 10 homeowners are mortgage-free.
Why the surge? Demographics play a big role. Many Baby Boomers who have lived in their homes for decades have fully paid off their mortgages. If you’re in that group, you may not realize just how much buying power you’re sitting on.
Your home equity is one of your greatest advantages in today’s market. If your mortgage is paid off (or nearly there), you could use the proceeds from selling your current home to purchase your next one in cash.
That comes with some big perks:
No mortgage payments in retirement
Lower monthly expenses if you downsize to a smaller home
A faster, smoother transaction with fewer lending hurdles
Buying in cash is also becoming more common. A survey from John Burns Research and Consulting and Keeping Current Matters found that all-cash purchases are climbing nationwide, with agents reporting increases in nearly every region.
For many Baby Boomers and empty nesters, downsizing isn’t about giving something up, it’s about gaining freedom. A smaller, lower-maintenance home can mean:
Less stress and upkeep
More flexibility and financial breathing room
The chance to focus on what matters most in this next chapter
Because downsizing isn’t about downgrading. It’s about upgrading your quality of life.
You’ve worked hard for your home. Now, it may be time to let it work hard for you.
If you’ve been wondering what downsizing could look like, or how much buying power your current home could unlock, we’d love to help you explore the possibilities. Let’s talk about what your ideal next home looks like and how we can get you there.