As homeowners age and their thoughts drift towards retirement, the idea of downsizing takes root.  Just over half of retiree’s plan on downsizing at some point.

When asked, this market segment cites simplicity, accommodations that better need their needs, being close to family, weather, and costs as prominent reasons they will ultimately decide to move into a smaller dwelling.

Here are some explanations for their thoughts.

Simplicity

My brother has a saying that I have adopted.

“Man with 1,000 cows has care of 1,000 cows.”

It seems obvious, but the more one has, the more one must maintain.  The converse of this is true too. The less one has, the fewer responsibilities one has.

Simplicity does not stop with “smaller living quarters.” It is a frame of mind that allows one to focus on the things most important to them because they have eliminated those things which just are not as important to them today as they once were.

Family

Often family is one of those most important things seniors wish to focus on and enjoy.

According to Meyers Research, LLC, -25% of baby boomers (our new senior population) will move closer to their adult children and grandchildren because it is easier to be involved and enjoy what is important.

Being closer to loved ones is understandable motivator for the aging population.

Accommodations That Better Meet There Needs

At some point seniors have a choice, to upgrade features in their current home (walk in tubs, ramps, stair lifts for second story homes) or to downsize and find a home that already have these upgrades.

Retirement Living estimates it costs somewhere between $2,500 and $25,000 to upgrade features so older population can safely age in place.

Many will consider downsizing as an alternative to investing in home upgrades; especially if there are other factors.

Closer To Medical Needs

If there are current or expected on-going medical needs, seniors will often find it peaceful to closer to near their doctor or medical center.

Costs

Let’s face it smaller is less expensive.  Utilities, homeowner’s insurance, repairs, etc. often are much less with smaller accommodations.

For those on fixed budgets, a reduction of costs can mean significant improvements in lifestyle.

Weather

According to Forbes Magazine, 34% of participants included better weather as a reason for their upcoming or move within the last 2 years.

Sixty days and 120 inches of snow in a big empty nest in Seeley Lake Montana vs. 281 days of sunshine at a smaller residence in Huntington Beach with zero snow days.

A smaller home, less cost, less upkeep, and better weather? For me personally, this is a no brainer.

Conclusion

Often a single motivator spawns the thought of downsizing, but it is typically a combination of simplifying life, being closer to family, lower monthly costs, enjoying better weather, and age-appropriate accommodations that will ultimately lead to the decision to downsize.

Being able to understand and uncover these needs, with the most affluent segment of the real estate market, allows real estate agents to take on more of an advisory role.

Being knowledgeable on programs and laws geared towards seniors (California’s Proposition 19 (maintaining your property tax basis when you move, Reverse Mortgages, etc.) sets us apart as experts.

On September 8^th, 2022, Join California Association of Realtors Senior Council Robert Bloom, and Reverse Mortgage Solutions’ Paul Lowry,  to learn the about Prop 19 and Reverse Mortgages.

If you are reading this after the class has taken place, you can view portions of it on our YouTube channel here.