Core Insights - Downsizing in retirement is often suggested as a way to save money, but the actual financial benefits can vary based on individual circumstances [1][3][5] Housing Market Trends - Housing is typically the largest expense for retirees, with larger homes leading to higher property taxes, insurance, utilities, and maintenance costs [3][5] - As of mid-2025, the U.S. housing supply is at its highest since 2020, with over 25% of listings marked down, potentially allowing retirees to sell their homes at favorable prices [6] - The median U.S. home-sale price reached $396,500, indicating that many retirees could benefit from selling their larger homes at strong prices [6] Equity and Financial Considerations - U.S. homeowners hold approximately $11.5 trillion in tappable equity, averaging about $212,000 per household, making downsizing a viable option for retirees to access cash [7] - Downsizing can lead to lower ongoing costs, such as property taxes and maintenance, thereby freeing up equity for other financial goals [5][6] Preferences and Challenges - AARP's survey indicates that 75% of adults aged 50 and older prefer to stay in their homes as they age, with 73% wanting to remain in their communities [4] - Despite the desire to downsize, 44% of older adults anticipate needing to move due to rising costs, with 71% citing rent or mortgage payments as a primary trigger [4]