Making the decision to downsize often depends on your lifestyle, finances, and location needs and preferences. Here are a few reasons to consider downsizing.

Your Monthly Housing Expenses Have Risen

Your property taxes or home insurance costs have increased.  The United States Housing Authority (USHA), says your housing expenses should not comprise more than 30% of your monthly income.(1)  If you’ve been affected by your ability to buy essential items, such as food, gas, and medical care, it may be time to consider downsizing your home.

You’re Having Difficulty Maintaining Your Home

Repairs and upkeep costs can make it difficult to maintain a comfortable standard of living, even with a low mortgage payment.  Mobility issues can also impact the amount of time it takes to complete usual maintenance around the home or yard.  Having to hire someone to do repairs, lawn mowing or could have a negative on your budget.

You Have Empty or Unused Space

Once your little birds have left the nest, why pay for a room that’s not being used?  If you don’t intend on converting those empty rooms into functional spaces, such as a home office, yoga studio, or cozy library, you should consider downsizing.

You're Considering a Lifestyle Change

You’re a free bird and have time to dedicate to your interests and volunteerism.  Maybe you have travel plans for your Third Act list or need closer access to medical care. Whatever your reasons your current home doesn’t meet those needs.

You Want to Lessen Your Environmental Impact

Smaller houses by nature consume less energy than larger ones, as it takes less electricity to heat or cool, or to keep rooms lit.  The larger the house the more energy is used, with the average American home using approximately 914 kWh per month.(2) The United States uses 61% of fossil fuels to generate electricity.(3)

Sources:

1. The Ascent. Is 2022 a Good Year to Downsize? https://www.fool.com/the-ascent/mortgages/articles/is-2022-a-good-year-to-downsize/
2. Green America. The Upsides of Downsizing. https://www.greenamerica.org/consume-less-live-more/upsides-downsizing
3. U.S. Energy Information Administration. FAQ. https://www.eia.gov/tools/faqs/faq.php?id=427&t=3