Downsizing has many benefits, including but not limited to:

Lower Utility Bills

Smaller square footage equals lower energy bills. More than half a household’s annual energy consumption is used for heating and cooling according to the US Energy Information Administration.(1)

Lower Mortgage Payment

Chances are the home you buy will cost less than the home you sold.  With a larger down payment you now have a lower mortgage payment.

Fewer Maintenance Expenses

Your budget will thank you.  The smaller the house and property size, the less it costs to maintain, this includes hiring out gutter cleanings, pressure washing and landscaping, just to name a few.

Reduced Clutter

Scaling back your possessions reduces how much you have to move, which in turn lowers your moving costs, lessens your time spent unpacking and makes it easier to stay organized once you've settled in.

Less To Clean

Less belongings = less to clean.  Time and energy spent vacuuming and mopping is reduced.

More Financial Freedom

The money saved on purchasing a new home can be put towards other pursuits. Build a rainy day fund, or take a dream vacation.

Source:

1. US Energy Information Administration Energy Use in Homes https://www.eia.gov/energyexplained/use-of-energy/homes.php