As we age, our needs and abilities change, and not all homes are designed to adapt to these changes. While it’s common to upsize your home when your family is growing, there comes a time when downsizing might be the right move. Downsizing can open the doors to a new chapter in your life, but making the decision can be tough, especially when leaving behind cherished memories. So, when is the right time to downsize? If owning a home in Seattle, WA, or renting in Portland, OR, has become more stressful than joyful, it might be time to consider downsizing or renting a smaller space like an apartment in Beaverton, OR. Here are 14 signs that indicate it’s time to put your house on the market and downsize.
Signs it’s time to downsize:
Your monthly housing expenses exceed 30%
You have little left over after paying bills
Maintaining your home is becoming challenging
Managing your home is more stressful than satisfying
Your home has features that make aging in place difficult
Your neighborhood no longer suits your lifestyle
You want to convert home equity into retirement income
You have the flexibility to live anywhere
Consider downsizing when several rooms go unused
You’re ready for a change of pace
Your storage spaces are overflowing
The kids have moved out and you no longer need the space
Downsizing has been on your mind for a while
You’re seeking a simplified life
What’s next?
Types of housing options for downsizing your home
In conclusion: do what’s right for you
1. Your monthly housing expenses have exceeded 30%
Typically, it’s recommended to spend around 30% of your monthly budget on housing expenses. This includes your mortgage payment, utilities, maintenance costs, homeowners insurance, and property taxes. If you’re spending more than 30%, you may be financially burdened. Downsizing can help lower your monthly housing expenses, giving you more financial flexibility.
2. You have little left over once bills are paid
In retirement, it’s essential to have funds for hobbies, activities, and continued learning. If your housing expenses are eating up most of your budget, downsizing can free up more money for things you enjoy.
3. Maintaining your home is becoming difficult
As we age, tasks like yard work, cleaning, and maintenance can become challenging. If you’re struggling to keep up with these tasks, downsizing to a smaller, more manageable home may be the right move.
4. Managing your home feels more stressful than satisfying
Your home should be a source of joy, not stress. If managing your current home is overwhelming, downsizing to a space that better suits your lifestyle can bring peace of mind.
5. Your home has features that make aging in place difficult
If your home has features that pose safety hazards or limit your mobility, downsizing to a more accessible floor plan can enhance your quality of life and prevent injuries.
6. Your neighborhood no longer fits your lifestyle
As your needs change, your neighborhood preferences may change too. Downsizing to a different neighborhood that better aligns with your current lifestyle can enhance your overall well-being.
7. You want to turn home equity into retirement income
If you’re looking to utilize your home equity for retirement income, downsizing can be a strategic move. Selling your current home and downsizing can provide financial freedom and flexibility.
8. You have the option to live anywhere
In retirement, you have the freedom to choose where you want to live. Consider exploring different housing options in various locations to find the perfect fit for your next chapter.
9. Consider downsizing your home when several rooms go unused
If you have rooms in your home that are rarely used, downsizing can help you save on utilities and property taxes. A smaller, more intentional space can promote clarity and peace of mind.
10. You’re ready for a change of pace
Whether you’re dreaming of travel or new experiences, downsizing can free up resources to enjoy life to the fullest. Embracing a simpler, more flexible lifestyle can lead to exciting adventures.
11. Your storage spaces are overflowing
When your storage spaces are overflowing with items you no longer use, it might be time to declutter and downsize. Letting go of unnecessary possessions can bring a sense of relief and create a more organized living space.
12. The kids have left and you don’t need the space
When your children have moved out, downsizing to a smaller home with fewer bedrooms can be a practical choice. Embrace this new phase of life and create a space that suits your current needs.
13. Downsizing has been on your mind for a while
If you’ve been considering downsizing for some time, it might be the right move for you. Simplifying your life and living with less can offer emotional and mental benefits.
14. You’re craving a simplified life
Living a simpler life can reduce stress and promote well-being. Downsizing can help you focus on what truly matters and create a more intentional living space.
Types of housing options for downsizing your home
When downsizing, consider various housing options that meet your current and future needs. From single-family homes to assisted living communities, explore the options that align with your lifestyle and preferences.
What to do now?
After recognizing the signs that it might be time to downsize, consider renting out your current home, making a list of stressors, and giving yourself a deadline to make a decision. Take proactive steps to explore housing options and make a choice that aligns with your values and lifestyle goals.
In conclusion: do what’s right for you
Ultimately, the decision to downsize is a personal one. Consider the signs, weigh your options, and choose a path that brings you peace, joy, and fulfillment in this next chapter of your life.
Redfin does not provide health, legal, financial, or tax advice. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional.