So, your knees hurt going up those stairs. You moved your craft work into Junior's room, but there are still two rooms totally unused. And, don't even mention the lawn. The weed-whacking has become problematic.
Welcome to the world of Baby Boomers, who own suburban houses perfect for the kids even though the kids no longer live there.
Baby Boomers, now aged 61 to 79, often contemplate downsizing as empty nesters or retirees for those reasons — and others. The obvious other reason is finances. A fixed income can mean monthly costs start to become burdensome.
Downsizing starts to become a real consideration. At least for some. One in three retirees vow never to sell, but others downsize shortly before or during retirement to simplify life.
Downsizing before retirement offers clear advantages. It reduces housing expenses like mortgages, utilities, property taxes, and maintenance, freeing up equity (averaging $212,000 tappable in 2025) for investments, travel, or debt repayment. This can lower stress, improve cash flow on a fixed income, and allow earlier enjoyment of hobbies, potentially saving thousands annually. By selling early, Boomers can lock in high home values before market shifts.
Post-retirement, selling and buying smaller homes can be tricky. Challenges include capital gains taxes on profits exceeding $250,000 (single) or $500,000 (married), making moves costly. A $2 million gain could incur $300,000 in taxes. Smaller homes in desirable areas like 55+ communities may be pricier due to demand, and health issues could complicate relocation.
And, there is always the emotional attachment to the family home — all the work and money you put in, the memories, trials, successes. It's home and that means something. Plus, if you downsize, you have to adjust to less room. Some things have got to go and that's another stressor.
There is a financial argument for downsizing, though. Rising insurance rates are just one consideration. They were up 24 percent in 2025. Taxes have risen to a median of $3,500.
In 2026's market, there is a potential declines in home values by 5 to 6 percent in some areas, meaning that selling now makes a lot of financial sense. If downsizing is in your future, act soon to secure affordable, low-maintenance options.