How to Downsize Your Home: 10 Useful Tips

In the 1960s, the average home size was 1,600 square feet. Fast forward to today, and that figure has jumped to approximately 2,600 square feet, according to the United States Census Bureau. But do you really need such a large house? 

Downsizing is a popular option for empty nesters living in an increasingly empty home–now that their adult children have graduated high school and moved into their dorm rooms or first college apartments

Young families are another demographic jumping on the downsizing bandwagon to lower living costs and reduce upkeep. If you’re looking to align your financial goals with your lifestyle, there is, perhaps, no better way than downsizing. 

While moving into a home with less square footage can feel like you’re taking a step backward in life, this is far from the truth. Instead of viewing this transition as a setback or a downgrade, look at it as a giant step toward your goals (financial and otherwise).  

Ready to begin your downsizing journey? This guide will explore the considerations, benefits, and strategies for downsizing.

Downsizing to a Smaller Space

Downsizing from a large home can have a big impact on your life – and your emotions. It’s normal to feel as overwhelmed as you are excited. You may even be sad to say goodbye to your space, your neighbors, or the city or neighborhood you love. 

But there are plenty of benefits to having less stuff to worry about (do you really need all the clothes that hang in your closet?) and less space to care for. 

In most cases (unless you’re moving to a more expensive city), you’ll notice the following benefits: 

  • Smaller mortgage payments.
  • Fewer chores (and more free time for your family, friends, and hobbies).
  • Lower repair costs.
  • Decreased monthly expenses, such as utility bills.

Downsizing is more than just moving to a smaller residence; it’s about embracing a lifestyle that prioritizes efficiency and simplicity

Of course, change is hard! So, it’s important to recognize some obstacles you may face, as you prepare yourself for your new chapter.

These challenges might include:

  • Initial overwhelming feelings as you sort through belongings.
  • Anxiety that part of your world is about to change (even if it’s for the better). 
  • Lifestyle adjustments like downsizing your possessions or reorganizing your home.
  • The frustrations and expenses of selling your home

That’s why they say: “Preparation is half the battle!” Get ahead of the game and make a to-do list  – just take it one room at a time. 

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When Is the Right Time to Downsize?

Timing plays a crucial role in the decision to downsize. In some cases, situations will arise that force the hands of homeowners who are unsure about downsizing. 

During Life Stage Adjustments

Many empty nesters or retirees find their current home no longer suits their needs. While they may have needed four bedrooms when their children were living at home, once those children have left the nest, they’ll have an abundance of bedrooms that go unused. 

Instead of paying to heat, air-condition, and maintain a room that is unoccupied, homeowners may choose to downsize. 

When Dealing with Physical Limitations/Maintenance Concerns

The AARP reports that over 70% of seniors want to stay in their homes as they age. However, the practicality of maintaining a large property can become burdensome.

For example, the maintenance demands of a large home can become increasingly challenging to keep up with. Thankfully, downsizing reduces the need for physically challenging and time-consuming tasks like extensive cleaning, big repairs, yard maintenance, and even navigating multiple flights of stairs. 

During a Financially Turbulent Times

For many, the appeal of downsizing is the desire to save money. Ideally, the decision to downsize should be made before the costs of maintaining a larger home begin to strain the household budget. 


Downsizing Cost Calculator

If downsizing is primarily a financial decision, it’s important to consider the potential costs involved (even if you’re saving money in the long run). 

  • The sale price of your current home: Start with the potential sale price of your existing home, taking into account current market values.
  • The cost of a new home: Deduct the purchase price of your new, smaller home.
  • Moving expenses: Include the costs for professional movers (if applicable), packing materials, and transportation. These can vary widely depending on distance and how you plan your move.
  • Renovation and repair costs: If your new home requires updates, or your current home needs renovating before it’s market-ready, estimate these expenses.
  • New furniture or storage spaces: Downsizing might mean your old furniture doesn’t fit. Budget for new items like floating shelves to save space or storage solutions (like a storage unit) for belongings you’re not ready to part with.
  • Closing costs and realtor fees: Both selling your old home and buying a new one come with fees and closing costs, which can be significant.
  • Utility cost difference: Often overlooked, utility cost differences can add up over time, leaving you with more disposable income. 
  • Property tax and insurance differences: Smaller properties often mean lower taxes and insurance premiums.

Tips for Downsizing into Fewer Square Feet 

Successfully downsizing requires careful planning and consideration. Here are some expert tips to guide you through the process:

Tip #1: Start Decluttering Early

Begin the downsizing process by decluttering. Sort your belongings into four piles: keep, sell, donate, and discard. This simplifies the moving process and helps you mentally prepare for living in a smaller space. 

Consider the Marie Kondo method of keeping only those items that “spark joy.” Eliminate unnecessary knick-knacks and consider having a garage sale to rid your space of unwanted items.

Tip #2: Plan Your New Space

Before moving, obtain the floor plan of your new home and use it to plan where your current furniture and belongings will go. This might mean measuring pieces to ensure they fit and visualizing the layout to optimize the use of space. If items don’t fit or suit the new space, sell or donate them ahead of the move.

Tip #3: Consider Multi-Functional Furniture

In smaller homes, efficiency is key. Opt for furniture that serves multiple purposes, such as a Murphy bed that folds up when not in use or ottomans with storage inside. This approach maximizes the utility of every square inch in your new home.

Tip #4: Be Mindful of Sentimental Items

Downsizing often means making hard choices about sentimental items. Decide which items are most meaningful instead of keeping every item with emotional value. 

Tip #5: Evaluate Your Financial Goals

Consider how a smaller house fits into your broader financial plan. For instance, do you have the potential to pay off your mortgage faster?

Tip #6: Address Debt Reduction Strategically

Downsizing can be an effective strategy for reducing your financial burden. The savings from lower monthly expenses can be redirected towards paying down high-interest debt. Use the money to pay down credit card balances or student loans, adopting either the highest interest rate (or debt avalanche) method or the smallest debt first approach.

Tip #7: Plan for the Emotional Journey

Acknowledge the emotional aspects of downsizing. Leaving a home full of memories can be challenging, especially on moving day. Allow yourself time to process these feelings, and reach out for support from friends and family.

Tip #8: Repurpose with Purpose

As you downsize, you’ll likely encounter items that are no longer needed or don’t fit in your new space but still hold value or function. Instead of getting rid of these items, consider repurposing them in innovative ways. 

Furniture that seems too large can be modified to fit a new purpose, such as turning an old dresser into a kitchen island or a bookshelf into a room divider with added storage.

Image source: Etsy

Tip #9: Seek Community Support

Look into local or online communities for support and advice during the downsizing process. Sharing experiences and tips with others who are going through or have gone through the downsizing process can provide valuable insights (and even emotional support). 

Tip #10: Consider Temporary Storage Space

If you’re unsure about which items to part with, using a temporary storage solution can provide a buffer to make decisions–without rushing. if you’re downsizing for financial reasons, consider a budget-friendly storage provider like Neighbor (that offers storage at costs 50% lower than traditional options).

This approach can be useful for seasonal items or belongings you’re not ready to part with but don’t immediately need in your new space.

You Got This!

Moving into a smaller place is a bold step that can really pay off. While the process may seem daunting while you’re still packing boxes, focus on the rewards — financial savings, less maintenance, and a home that truly fits your current needs — are well worth the effort. 

With careful planning and a positive mindset, you’ll navigate this transition successfully, opening the door to a new chapter of life that’s rich with possibilities.

Let Neighbor Help You Downsize

When downsizing your living space, you might find yourself with belongings that no longer fit. But this presents a challenge: finding a place for these items without cluttering your new, smaller home.

Thankfully, a peer-to-peer storage marketplace, like Neighbor, offers a practical solution to this dilemma.

Neighbor connects individuals looking for storage space with those who have space to offer. This platform allows you to find storage spaces that match your specific needs, whether it’s for furniture, books, or other items. You’ll even find storage hosts in your very own neighborhood.

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