6 Reasons Why Downsizing Can Be a Good Thing

There is a [somewhat] common belief that "bigger is better" where home-buying or -ownership is concerned, often based on an assumption that the larger the property, the more comfort and long-term value. In fact, the average new home built in the 1970s was somewhere around 1,600 square feet—but a survey in 2020 by the National Association of Home Builders found that nearly 60% of new homes built in the U.S. were larger than 2,400 square feet (a pretty significant increase, we'd say). 

It's true that a larger house can provide more space, both inside and out, and add a touch of perceived luxury...but we’ve also seen enough to know that size does not always equate to value.

As we see it, a more petite home—particularly one that's been thoughtfully designed—in the right neighborhood can, in many ways, lend more value than a sprawling mansion that stretches your budget (and, let's be honest, has probably been underutilized). The list below highlights a few ways in which bigger isn't better and smaller saves your dollar.

1. More Manageable Upkeep

   Downsizing can make daily chores—things like cleaning, organizing, and home repairs—far more manageable. With fewer rooms and less space, it's all a little less overwhelming, which means you'll save on both time and energy. Same goes for the exterior needs: a smaller home is likely to come with a smaller lot (or no outside maintenance needs at all, if we're talking condos/town homes), thereby requiring less work on your end.

   
   

2. Smaller Environmental Footprint

   Living in a smaller home typically means you'll have less of an environmental impact, as it requires less energy to heat, cool, and power. With fewer materials used in construction and a reduced demand for energy, the decision to downsize can significantly lower your carbon footprint. When you prioritize efficiency over excess, it can lead to greater financial stability and a more sustainable and comfortable living situation. Win, win.

   
   

3. Lower Maintenance Costs

   As homes age, maintenance needs tend to increase (as with us, eyeroll). If you're spending more time and money on upkeep than you’d like, downsizing to a property that requires less maintenance can be a smart move. Smaller homes come with lower maintenance costs, as they require fewer repairs and less frequent updates. Plus, utility bills are generally lower, as are costs associated with yard maintenance or home improvements.

   
   

4. Financial Considerations

   Finding it difficult to keep up with mortgage payments, property taxes, or insurance premiums? Downsizing is a great way to relieve that financial pressure. With reduced monthly expenses, cash can be freed up for retirement or other priorities. The sale of a larger property might also serve as a great financial cushion, which can be invested or used for other life goals. Bonus: there's also the potential here for more flexibility in budgeting and spending.

   
   

5. Less Clutter

   If your home feels cluttered or you’re finding it challenging to manage belongings taking a step down in size can work wonders for the proverbial "fresh start" by encouraging you to simplify. In reducing the amount of space you have, you naturally reduce the amount of "stuff" you can accumulate. In this way, you might be forced to evaluate/prioritize belongings and create a more organized environment, which always lends itself to greater mental clarity and a more peaceful atmosphere.

   
   

6. More Location Options

   If you're feeling drawn to a different area—whether that means a new city for closer proximity to friends or family or a different neighborhood that better accommodates your lifestyle—downsizing can help facilitate by opening up some opportunities. With a smaller property to maintain, you may have the freedom to explore areas that were previously unaffordable or impractical, which essentially means you have more flexibility to choose the best spot for your current needs.

   
   

7. Change in Lifestyle

   A shift in lifestyle—whether that means retirement, a big job change, or the desire for a lot more travel—could prompt the need for a living arrangement that's a bit...simpler. Downsizing can allow you to live more freely and reduce the burden of home ownership. In many ways, a smaller home can align with a simpler, more intentional lifestyle, allowing you to focus on experiences rather than expenses.

   
   

Homeworks Property Lab, 66 Exchange Pl., SLC P: 801.810.8696