If you’re thinking about downsizing to lower expenses, be closer to family, or just simplify life, here’s a trend worth watching: more homeowners are buying their next home outright — no new mortgage, no monthly housing payment.

Recent analysis shows that more than 40% of owner-occupied U.S. homes are mortgage-free — an all-time high in this data series. In plain terms, about 4 in 10 homeowners own their homes free and clear. One large reason for this shift is demographics: Baby Boomers have had time to pay off mortgages, and many now hold significant equity that can be turned into buying power.

If you’re mortgage-free (or close), your equity is a major advantage. Sellers who convert their home equity into cash at sale can:

1. Buy their next home in cash and avoid monthly mortgage payments.

2. Reduce future financial stress and maintenance obligations.

3. Free up more monthly cash flow if they choose a less expensive property.

4. Close faster and with simpler transactions than buyers who need financing.

The process is straightforward: sell your current house, use the proceeds to purchase the next property in cash. It sounds bold, but for many owners who have built equity over the years, it’s realistic — and increasingly common.

Industry surveys show the share of all-cash purchases is climbing nationwide. Agents report more cash buyers across almost every region, and that trend is especially pronounced among older homeowners who prioritize a low-stress retirement lifestyle.

For Baby Boomers in particular, buying with cash can mean greater control over the next chapter: smaller homes, lower upkeep, and more flexibility to spend time on travel, family, or hobbies — all while staying debt-free.

Downsizing = upgrading your lifestyle

Downsizing isn’t about giving up — it’s about freeing up resources to improve quality of life. Owning your next home outright can lower ongoing costs, reduce chores and repairs, and make retirement or semi-retirement feel more secure.

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Bottom line

You’ve worked hard to build equity in your home. Now it might be time for that equity to work for you. If you’re curious what your house could unlock — cash purchase, downsizing options, or a plan that preserves liquidity — let’s talk about the value of your home and the practical steps to make debt-free downsizing a reality.

⭐ What would your ideal home look like if you were to downsize today?