Ready to downsize? These are the biggest things to keep in mind (2024)

• 12 percent of the overall home buyers between the ages of 45 and 64 in 2017 were downsizing
• Clearing the clutter and finding the right real estate agent are important steps in downsizing
• Reasons to downsize can include less space, less maintenance, being closer to kids and grandkids

The kids are out of the house. After more than30 years of work, you're thinking about the days well past the 9-to-5 life.

But the home that has accommodated your past lifestyle — perhaps a traditional two-story wood-frame house with four, maybefive bedrooms, and a family room — suddenly seems overwhelming.

As adults age into their 50s and 60s, many of them are ready to downsize.That often means purchasing a townhouse to trim maintenanceor a smaller one-story home to keep stair climbing to a minimum.

Number of older Americans is soaring, and they're downsizing

The U.S. population aged 65 and over is projected to soar to 73 million by 2030, an increase of 33 million in just two decades. By 2040, the aging baby boomers will also push up the population aged 80 and over to 28 million, more than three times the number in 2000, according to a housing surveyby Joint Center for Housing Studies at Harvard University.

Nationwide, 12 percent of the overall home buyers between the ages of 45 and 64 in 2017 were downsizing, according to statistics tracked by the National Association of Realtors. To focus further on baby boomers, 46 percent of the home sellers in that group downsized, according to the 2017 Zillow Group Housing Trends Report.

Mary Lou and Ken Hartman are typical of the trend. When the last of the Hartmans' children went off on their own, it was time to reassesstheir situation.

The five-bedroom, two-bath Owego home was too large.

"There waspart of the house, a whole floor, we didn't use," said Mary Lou Hartman, 48.

Off they went looking. Everything needed to be smaller with oneexception — the yard. It had to accommodate expansion of Mary Lou's summer vegetable garden, which was longpinched by a smaller grassy area atthe former Owego home.

The couple found a new home in the Chemung County community of Erin, about 40 milesto the west on Interstate 86, and downsizedfrom their five-bedroom home to a two-bedroom one. As it happens, the new house was closer to Mary Lou's work at Greater Southern Tier BOCES based in Elmira.

Rather than being in a neighborhood, the Hartmans' new setting is more rural.

"We just wanted to be by ourselves," Mary Lou Hartman said. "We didn't want to be next to people."

How to prepare to downsize

Downsizing isn't a spur-of-the-moment decision. Couples, such as the Hartmans,usually hatch a plan well before they start the process.

Preparing for the eventual move takes time. Part of downsizing means clearing the clutter that has accumulated over the years. That process should begin well before the move, at least six months and as long as year, and preferably soon after the last of the children depart for their own lives.

"Plan ahead," said Allison Ashley, team leader at the KellerWilliams on Binghamton's South Side. "Clean out the closet. Have your kids come and help. Focus on things that matter and get rid of things you don't need."

Memories of good times had at the home may keep an oldercouple attached to the larger home longer than needed. Real estate advisers recommend taking photos of the old home, or just gather a photo album— hard copies or digital— to lessen the anxiety over the transition.

Also, if you are considering the move, search out an real estate agent accustomed to working with older couples downsizing. They may offer some critical advice and guidance that a generalist may neglect.

An agent will help you assess thevalue of your existing home, assist in pricing it to current market conditions, Ashley said, and determine how much you owe and how much you can afford.

Downsizing can lead to fewer expenses

Lowering expenses is another major reason for downsizing. A smaller home— assuming it's adequately insulated and has been well-maintained— will usually trim monthly utility expenses. Additionally, by downsizing the property tax bill could be also be trimmed, depending on your choice of community.

Economics drove Brian DeYoung's decision to downsize, By moving to a smaller home in Danby,six miles from his old home in the City of Ithaca, he was able to markedly trim his tax bill after his 24-year-old daughter moved out and boughther own home in the area.

"It wasn't the size, it was the economy of the house," said the 54-year-old DeYoung.

DeYoung, a licensed associate real estate broker with the Howard Hanna office in Ithaca, said many of his Baby Boomer clients are doing the same, trimming their floor space or moving to one-story structures.

There are other advantages to downsizing other than skipping the stairs.

Is your home mortgage-free?If it is, you may be able to downsize, buy a smaller new homeand still pull some money out of the transaction. Considering the values of modernhomes, it may be worth your while to consider consulting a reputable financial adviser to determine if you want to do an all-cash deal for you new residence or assume another mortgage.

Should you rent or buy your home?

Then there's another determination: To rent to to buy? Much depends on individual circ*mstance, projected retirement income and personal choice.

Renting and owning have their unique advantages and disadvantages.

"For many older adults, homeownership represents a vital safety net," the Harvard Housing Study said."First and foremost, owning a home outright greatly reduces monthly housing outlays. In addition, home equity provides an important resource that owners can tap to meet their expenses in retirement. Owners are also more able to modify their homes to meet their evolving preferences and needs.

"At the same time, though, homeowners face the physical demands and financial burden of maintaining their properties. More significantly, owners must pay property taxes, insurance costs, and association fees if applicable. And selling their homes involveshigh transactions costs, making it costly to move to housing that may better fit their needs."

Trending now are tiny home rental communities designed for older adults.

Tiny homes popular with older owners, retirees

Located on the eastern shore of Seneca Lake in Schuyler County, La Bourgade On Seneca is a growing community of small, year-round rental houses designed and built by Schickel Construction Co. of Ithaca.

When complete in 2019, La Bourgade will have 40 energy-efficient cottage homes ranging in size from 700 to 1,300 square feet, as well as the larger“Meeting House,” which serves as a social center for residents.

The development and those who desire to live there are part of a growing interest indownsized housing and clustered housing, owner Bruno Schickel said.

La Bourgade’s cottages are more spacious than “tiny houses,” which usually measure under 500 square feet. The finished units include the 900-square-foot “Classic Cottage,” which has two bedrooms plus a loft, and the “Spacious Cottage,” a 1,000-square-foot home with two bedrooms and loft, plus a specially designed dormer area.

Rent for the Classic Cottage is listed at $1,495 per month and the Spacious Cottage can be rented $1,725 per month, with leases of 12 or 24 months. Water is included in the rent, with the tenant paying for electric and gas.

Should you move where your grandkids are?

The mostdifficult part ofthe downsizing decision: Do you move away from the community in which you've made a large part of your life?

Based on her experience, Ashley said whether mature homeowners remain in the region or depart for other areas usually determined bywhere the children and grandchildren are located.

A sellers market exists in a large portion of theregion, with inventory of available home down 20 percent in the past year, she said.

"If priced correctly, a home could bring multiple offers," Ashley said.

Stepless ranch homes are unique finds in the region, she said, but one-story homes with just a few steps are plentiful.

As a real estate agent himself, Dale Tifft, 62, is experiencing what he guided many of his clients through over his years in the industry.

His five-bedroom house on a half-acre lot on Binghamton's Southwest Side just seems too much for him and his wife, Marlaina, as the last of the four boys in the combined family exits college and seeks a job.

"The house is too big," Tifft said.

Instead, he expects tobuild a new single-story home on a still underteminedsite.

Preparations for the downsizing started months ago.

"I started to feel like I have to put the house in nearly perfect condition," said Tifft, and agent with the Binghamton Howard Hanna Real Estate Services office.

Aging Americans will drive housing market, supply

As more baby boomers move into retirement, real estateexperts predict the impact of their downsizing push will have a major impact on the nation's future housing construction.

"As the baby boomers age from their 50s and 60s into to their 70s, 80s, and beyond over the coming decades, they will continue to drive housing demand," the Harvard study concluded."Indeed, the housing that is built or modified for these aging households will leave an indelible mark on the nation’s housing stock."

Kate Collins contributed to this story.

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