Downsizing for Retirement: What Homeowners Over 60 Need to Know

Retirement Is Closer Than You Think. Is Your Home Ready?

For a growing number of homeowners, retirement isn’t some far-off idea anymore. It’s getting real.

According to Realtor.com and the U.S. Census, nearly 12,000 people will turn 65 every single day for the next two years. And many of them aren’t just aging into retirement, they’re actively planning for it. About 15% expect to retire in 2026, and another 23% in 2027.

If you’re starting to picture what that next chapter could look like, your home deserves a seat at the table.

Why So Many People Choose To Downsize

Retirement doesn’t mean you want less. It usually means you want life to feel easier.

Easier to maintain.
Easier to manage.
Easier to enjoy.

That’s why downsizing has less to do with sacrificing space and more to do with gaining freedom. Fewer stairs. Less upkeep. Lower monthly expenses. More time for the people and activities that actually matter.

What’s Really Driving Moves After 60

Data from the National Association of Realtors shows homeowners over 60 aren’t moving to chase market timing or squeeze out every dollar. They’re moving for lifestyle reasons.

Most want to be closer to children, grandchildren, or long-time friends. Others want a smaller, more functional home that fits the years ahead, not the years behind. Many are retiring and no longer need to live near work, which opens the door to new locations entirely. And plenty are simply ready to reduce costs tied to utilities, insurance, and maintenance.

Different reasons. Same goal: a home that supports the life they want now.

The Equity Advantage Most Homeowners Underestimate

Here’s what’s making downsizing more realistic than many people expect.

According to Cotality, the average homeowner today has about $299,000 in equity. For longtime homeowners, especially those nearing or entering retirement, that number is often much higher.

Living in one home for years creates a powerful combination:

• Your home value grows.

• Your mortgage balance shrinks or disappears.

That equity can fund a downsize, reduce or eliminate a new mortgage, or free up cash for travel, healthcare, or simply peace of mind. Even in today’s market, it gives you options.

And while leaving a home filled with memories can be emotional, downsizing isn’t about closing a door. It’s about opening the right one next.

Bottom Line

Downsizing is about designing your next chapter on your terms.

If retirement is on the horizon and you’ve started wondering what your home and your equity could make possible, the first step isn’t selling. It’s getting clarity.

A no-pressure conversation with a local agent can help you understand your options and decide whether downsizing makes sense for you now, later, or not at all.

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434