For a growing number of homeowners, retirement is no longer a distant idea — it’s happening now. With roughly 12,000 people turning 65 every day for the next two years, and surveys showing that about 15% of older Americans plan to retire in 2026 (another 23% in 2027), many households are rethinking what they want from their next chapter. Downsizing is rising as a popular choice because it can simplify daily life while freeing up resources for the things that matter most.

A lot of people picture downsizing as “giving something up,” but for many it’s the opposite: a deliberate move toward greater ease and enjoyment. As priorities shift in retirement, homeowners increasingly value homes that are simpler to manage — fewer stairs, lower maintenance, smaller utility bills, and less time spent on chores.

Downsizing can mean trading square footage for convenience: more time with family, more energy for hobbies and travel, and a home that fits current needs rather than past ones. That shift in priorities is what’s driving many toward a smaller, more functional property rather than staying in a house that demands more than they want to give.

When you look at why people in their 60s and older are relocating, the reasons are overwhelmingly lifestyle-driven rather than market-driven. The National Association of Realtors (NAR) identifies the leading motivators:

1. Proximity to family and friends. Many choose to move closer to children and grandchildren so it’s easier to spend meaningful time together.

2. A simpler, more functional home. Buyers want fewer stairs and less upkeep — features that make daily life safer and more comfortable.

3. Freedom from work-location constraints. Retirement removes the need to live near an office, allowing people to choose places that better match their lifestyle priorities.

4. Lower monthly expenses. Smaller homes often reduce costs for utilities, insurance and maintenance, easing budgets and freeing up income for other uses.

In short, older homeowners are downsizing to gain control — choosing a home that better matches how they actually want to live now, not how they lived decades ago.

What’s making downsizing possible for so many homeowners right now is a financial reality: years of home-price appreciation and mortgage paydown have produced significant equity. Research from Cotality indicates the average homeowner today has about $299,000 in home equity — and long-time owners often have even more. Over decades, home values rise while mortgages shrink, creating meaningful options at the time of sale.

That equity gives retirees choices: buy a smaller place outright, use proceeds to fund retirement goals, or purchase a similar-quality home in a different location with money left over. In practice, this means downsizing can be less about sacrifice and more about unlocking flexibility and security for retirement living.

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Bottom line

Downsizing is a way to design the next chapter of life on your terms — making daily life easier, closer to loved ones, and often more affordable. If retirement is approaching and you’re curious what your home and equity could make possible, start with a no-pressure conversation.

⭐ Let’s talk through the options and see whether downsizing fits your goals.