Some Homeowners Are Downsizing, But Why?

Over the past few years, we’ve started to see downsizing becoming a trend, specifically amongst Millennials and Boomers. While this may sound strange, it makes sense from an economical standpoint. While each generation has their own reasons for this, there is some overlap as well.

Boomers

It’s been widely known that Boomers have been aging in place in the recent past. However, they’ve begun transitioning to a downsizing state of mind. Studies have found that the major reason for this is because they no longer have the need for a large home. Their children have grown and left the nest. As they’re getting older, not only do they not require the space, they also don’t want to take on the task of cleaning and maintaining so much square footage.

It is important to note that many Boomers are staying in their homes because their Millennial children still live at home due to economic circumstances. Therefore, downsizing is less of a priority because there’s very little motivator or opportunity.

Millennials

This will come as no surprise to any Millennial ever, but the number one deciding factor for them downsizing was money. In contrast, less than 60% of Boomers cited this as a motivator for them, while over 80% of Millennials said it was theirs. Downsizing is a legitimate way to save significant money each month, but there were also other reported benefits such as increased closeness to family and friends, as well as the ability to declutter and refocus. 

Gen X also cited money as a factor in downsizing, but they are also on the cusp of children no longer living at home as well, so it was a fairly balanced reasoning. They tend to be staying in place a bit more for the time being, for obvious reasons. 

The Downside of Downsizing

Around 30% of those surveyed have expressed that the lack of space has had a negative impact on them. This included a loss of privacy, lack of storage and living space, and no longer living on their own. A quarter of Millennial respondents revealed that downsizing meant they had to move back in with their parents or with a significant other’s parents, resulting in stressful situations. 

Are You Looking to Downsize?

Whether you’re looking to downsize, buy for the first time, or just want something new, contact me today to see all that Northern Colorado real estate has to offer!