{"id":56,"date":"2024-09-03T15:59:44","date_gmt":"2024-09-03T15:59:44","guid":{"rendered":"https:\/\/innovationscdc.org\/blog\/?p=56"},"modified":"2024-11-18T15:51:01","modified_gmt":"2024-11-18T15:51:01","slug":"living-smaller-pros-cons-of-downsizing","status":"publish","type":"post","link":"https:\/\/innovationscdc.org\/blog\/2024\/09\/03\/living-smaller-pros-cons-of-downsizing\/","title":{"rendered":"\u2018Living smaller\u2019: Pros, cons of downsizing"},"content":{"rendered":"\n
\"High<\/figure>\n\n\n\n

By Andrew Dehan
Bankrate.com<\/em><\/strong><\/p>\n\n\n\n

It\u2019s not just retirees choosing to downsize \u2014 with today\u2019s elevated housing costs, many people are looking to smaller properties for relief. In fact, 44% of U.S. adults who would be willing to make a sacrifice to find more affordable housing say they would consider downsizing their living space, according to Bankrate\u2019s 2024 Home Affordability Report.<\/p>\n\n\n\n

But living smaller comes with its challenges. Let\u2019s weigh in on why people may want a smaller footprint, as well as the benefits and drawbacks of downsizing your home.<\/p>\n\n\n\n

Why buy a smaller house?<\/p>\n\n\n\n

The short answer is, to save money: High mortgage rates and even higher home prices are two major reasons people look to buy a home that\u2019s on the small side. A lower price tag on your house means borrowing less money to make the purchase and paying less interest over time.<\/p>\n\n\n\n

But location is another reason people may choose to live smaller. Many people will opt for convenience, abundant amenities and a shorter commute to work over more square footage.<\/p>\n\n\n\n

\u201cUsually, it\u2019s more expensive to be closer to a big city,\u201d says Maggie Johndrow, partner and financial advisor at Johndrow Wealth Management in Connecticut. \u201cI see folks choose to get a smaller home [in or near the city], even though they could maybe afford a bigger home at the same price a little bit further out from the city.\u201d<\/p>\n\n\n\n

Living with a smaller footprint can have many benefits, both for your finances and your lifestyle.<\/p>\n\n\n\n

Reduced expenses<\/strong><\/p>\n\n\n\n

Opting to live in a smaller home can translate to bigger savings in maintenance and upkeep. \u201cA smaller home means smaller utility prices and not having to buy as many goods to fill it up,\u201d says Johndrow. \u201cAnd with inflation elevated, as we\u2019ve seen over the past couple of years, folks are mindful of that.\u201d<\/p>\n\n\n\n

Property taxes and home insurance premiums are often lower when you choose a smaller and less expensive home, too. And small homes usually have easier-to-manage yards as well \u2014 something to keep in mind for lawn-care and landscaping costs.<\/p>\n\n\n\n

More minimal lifestyle<\/strong><\/p>\n\n\n\n

Having a larger home can also mean more work. Not only do you have to keep up with maintaining the house itself, but you also have to take care of everything in it. For Erin Hybart, a real estate agent in Louisiana who specializes in tiny homes, living smaller translates to simplicity.<\/p>\n\n\n\n

\u201cPeople are spending their lives working to pay for their house, and then even more of their time cleaning it,\u201d Hybart says. In addition, when people have large homes with plenty of storage, they can easily forget about their belongings and get overwhelmed by their stuff. She says that clients often find they\u2019ve bought duplicate items because they forgot they already had something: They\u2019ll say, \u201cOh my gosh, I haven\u2019t seen this in three years. Why do I have five of these?\u201d she says.<\/p>\n\n\n\n

Another plus: Having to spend less time and money on your house, and the stuff in it, opens up other opportunities, such as pursuing education or traveling.<\/p>\n\n\n\n

Environmentally friendly<\/strong><\/p>\n\n\n\n

Larger homes require more energy to keep running, particularly when it comes to heating and cooling. And outfitting a large home with energy-efficient appliances and lighting can be expensive, as are new windows and upgraded insulation. If you\u2019re eco-minded, it may just be easier to live in a smaller space.<\/p>\n\n\n\n

\u201cIf sustainability or environmental stuff is important to a homebuyer, they can integrate that much more easily when the space is smaller,\u201d says Hybart. \u201cThey don\u2019t have to put, you know, $40,000 worth of solar panels on their house.\u201d<\/p>\n\n\n\n

Life outside the home<\/strong><\/p>\n\n\n\n

When you choose to live smaller, you often shift your focus away from spending time in your home.<\/p>\n\n\n\n

You may find yourself using your outdoor space more, such as relaxing on the porch or in a hammock instead of in your living room.<\/p>\n\n\n\n

And for those in more scenic areas, that could mean enjoying the great outdoors with activities like hiking or fishing.<\/p>\n\n\n\n

People who live in cities might make more use of the city\u2019s amenities and entertainment options. \u201cFind other things that you enjoy, like a brewery or a park to spend time in,\u201d says Johndrow.<\/p>\n\n\n\n

For some, a smaller space can be a positive, but for others, it\u2019s decidedly not.<\/p>\n\n\n\n

Less space<\/strong><\/p>\n\n\n\n

Obviously, living smaller puts you in closer quarters with your family. This isn\u2019t always a plus \u2014 it can cause serious friction, especially if you work from home and\/or have a large family. And if your area has limited entertainment options or outdoor activities are limited due to weather, small spaces can begin to feel cramped very quickly.<\/p>\n\n\n\n

Greater expenses<\/strong><\/p>\n\n\n\n

In some circumstances, downsizing your home can actually mean more expenses instead of less. For instance, if you bought your current home several years ago, it\u2019s important to keep in mind that home prices have increased significantly since then. Look into whether a new home in your desired area, even if it\u2019s smaller, might cost more than what you can sell your current home for, says Johndrow.<\/p>\n\n\n\n

\u201cAre you willing to use cash to pay for the smaller home, from the proceeds of your larger home, or are you going to get a mortgage?\u201d says Johndrow. If you\u2019re getting a mortgage, she says, keep in mind that interest rates are much higher now than they were just two years ago.<\/p>\n\n\n\n

Another thing to consider is whether your new home is part of a homeowners association. Many smaller homes are, especially in new developments, and HOA fees are something to budget for. The amount can vary widely: \u201cI\u2019ve seen those range from a few hundred bucks a month to even creeping into the $1,000 a month territory, depending on where you live and the amenities that they provide,\u201d Johndrow says.<\/p>\n\n\n\n

Limited options<\/strong><\/p>\n\n\n\n

If you\u2019re looking for a smaller property, you may have to look harder than most. The average size of a new home in 2023 was 2,411 square feet, according to the National Association of Home Builders. While this is a 13-year low, it\u2019s still much larger than many looking to downsize might need. To find a smaller single-family home, you may need to be willing to buy an older home, and possibly be flexible about its location.<\/p>\n\n\n\n

This is especially true for a trendy tiny home, for which residential zoning is another factor to think about. Finding a place to build a tiny home can be tricky depending on the zoning in your area, Hybart says. They can also be difficult to fund with a traditional mortgage.<\/p>\n\n\n\n

Getting started<\/strong><\/p>\n\n\n\n

Whether you\u2019re planning to move to a smaller place soon or you\u2019re just looking for a more minimalist lifestyle, you can start downsizing your home by changing the way you use the space you already live in.<\/p>\n\n\n\n

\u2022 Downsize your possessions: Declutter your closets, throwing out or donating what you don\u2019t need, and pare down what you own to the essentials. A big part of the appeal of a smaller home is its manageability \u2014 reducing the amount of stuff you have can reduce the upkeep of your current space.<\/p>\n\n\n\n

\u2022 Rethink how you use your space:Now that your home is not stuffed to the gills with unneeded items, what can you do with the space you\u2019ve created? You might find that you now have room for a dedicated home office, a den, a craft area or a more organized storage opportunity.<\/p>\n\n\n\n

\u2022 Consider your indoor climate:Heating and cooling can be expensive. One way to reduce your energy bill is to install a smart thermostat to adjust the temperature with the weather. You may also consider blocking off an underused room in extreme weather months or getting an energy-efficient portable air conditioner or heater to use in just one specific room.<\/p>\n\n\n\n

Even if you aren\u2019t actually downsizing your home anytime soon, spending less time and money caring for your belongings can help you prioritize what really matters to you.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Andrew DehanBankrate.com It\u2019s not just retirees choosing to downsize \u2014 with today\u2019s elevated housing costs, many people are looking to smaller properties for relief. In fact, 44% of U.S. adults who would be willing to make a sacrifice to find more affordable housing say they would consider downsizing their living space, according to Bankrate\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":57,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-56","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/posts\/56","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/comments?post=56"}],"version-history":[{"count":3,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/posts\/56\/revisions"}],"predecessor-version":[{"id":105,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/posts\/56\/revisions\/105"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/media\/57"}],"wp:attachment":[{"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/media?parent=56"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/categories?post=56"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/innovationscdc.org\/blog\/wp-json\/wp\/v2\/tags?post=56"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}