Downsizing: Should You Move to a Smaller Home?

Home Financing


3 min. read

By: FCU Team

People love space! Anyone who has lived in a cramped home or apartment has yearned to move on to something bigger. As needs change through the years and you achieve your big home goals, you may find yourself wondering if it’s time to downsize. Let’s find out if downsizing is right for you.

What is Downsizing?

According to Merriam-Webster, downsizing means to reduce something in size. For some, downsizing may mean reducing the size of your home, meaning less bedrooms and square footage. For others it could be lowering the mortgage or utilities payments to save money.

What Does Your Current Home Usage Look Like?

If you have an empty nest, or are looking to simplify home upkeep and costs, it’s possible you might have a few empty rooms at home. You could also have a large living room and dining area that aren’t being used to their full potential.

Take a moment and think about how much use these rooms get. Do relatives come to visit often? Do you host many parties throughout the year? If the rooms aren’t being used, downsizing might be in your best interest.

On the other hand, if your home is a regular hub of activity with friends and family, the space might be worth it. For those who love to host, space is a much. If downsizing would hinder your ability to hold a great shindig, you should stay where you are!

Home Maintenance

Homes require tender love and care! Whether that’s regular cleaning of rooms or exterior upkeep, there’s always a lot to do and it often takes time and money to have everything look great.

The more square footage you have, the more work it is to clean, as rooms not in use gather dust all the same. On the outside, a big yard means more time and money spent taking care of it. You may also have a pool to maintain. Downsizing to a home with a smaller yard or no pool can eliminate some of these issues, and you can maintain your same lifestyle with less cleaning.

This is why many nearing retirement opt to leave big homes behind to transition to apartments/condos or smaller homes that are a better fit to their current lifestyle.

Neighborhood Blues

Over time, your feelings about your neighborhood may change. The reasons for why you moved to your current home, like great schools, might not be as important to you now as they were back then. This is unique to every individual and neighborhood they live in. You might be at a different stage of your life and may seek a new neighborhood to better match your new preferences.


Do you see yourself retiring in your current home? This question can be difficult to answer based on your current age. If it’s something you see coming in the next few years, getting a smaller place with less upkeep can help you stay focused on enjoying retirement.

A Few Other Things to Consider

There’s more that goes into the decision to downsize than just deciding to do it. You likely own a great deal of stuff that might not have a place in your new home. Developing a thorough plan for what to do with all your stuff is imperative! Whether that’s donating, selling or storing, it needs to go somewhere!

Unless you’re keeping your current home and just moving elsewhere, you will also need to sell your current home. That has its own challenges. You also have to consider if you’re financially fit to take out a mortgage for your new home (unless you can afford to pay for the home outright).

If you’re keeping your original home, you need a plan as well! Will you set up a rental property for tenants or a family member? Perhaps you’re moving far away and your original home can turn into a vacation home. Everyone has different needs; just ensure you’re thinking about all the variables that need to be considered after you decide to downsize.

Next Steps

If you’re looking to get a new place, FCU is ready to be your mortgage partner! With a variety of loan offerings and great rates to boot, we’d love to help set you up with your new home.