Younger Homeowners Downsizing

Downsizing to a smaller house. It’s usually part of retirement. The kids are grown and on their own, and  you don’t need so much room. But there is an interesting trend growing amongst Millennial homeowners: They don’t want so much space either.

 “Some younger homeowners are choosing to downsize to smaller homes or condos,” says Fara Espandi, Sales Associate at ERA Justin Realty, “It’s their way to save money on housing when the cost of living is so high.” 

“When you think about saving money, you might focus on cutting down on things like groceries and clothing,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “When you downsize your house, you also shrink the bills that come with it including the mortgage payment, property taxes, lawn maintenance, electricity, and heating and cooling costs.”

Selling could earn you a windfall of money. “Many of these homeowners are surprised to find out how much equity they have built up in their house,” says Espandi, “And how much it appreciated in value, even if they’ve only owned it a few years.”

One pitfall in this scenario is a smaller home equals a retirement home to their parents, and a starter home to younger generations. So, the market could be more crowded than they expected.

“Millennial downsizers should keep in mind that inventory is low across the board, so they may sell their big house fast, but could have fewer options to choose from when buying smaller due to competition from Boomers and Gen Z,” says Metzger.

If you’re thinking about downsizing, ask yourself these questions:

• Do the original reasons I bought this house still stand? Or have my needs changed?
• Do I really need and want the space I have right now, or would something smaller be a better fit?
• What are my housing expenses right now and how much do I want to save by downsizing?

Once you know the answers to these questions, meet with a real estate professional like Fara Espandi or any of the agents at ERA Justin Realty to assess your options. Give us a call at 201-939-7500.