How to weigh your space, lifestyle and financial needs before making a move.

Downsizing is often viewed as a consideration for empty nesters, but a smaller house isn’t the only choice for those living in a household of one or two. And empty nesters aren’t the only ones considering their space needs. Growing families, multigenerational households and remote workers are among those who might consider downsizing, upsizing or staying put.

Downsizing pros and cons

Maybe the kids are grown and gone, or maybe the expansive house feels like too much work. No matter why a smaller space sounds appealing, there are pros and cons to consider.

The key advantage many people see to downsizing is a reduction in maintenance and utility costs. If their new place is a condo or an apartment, they also benefit from no longer having to keep up with the landscaping or most of the building’s exterior. However, a smaller place isn’t necessarily a less expensive place. Your new home may come with higher costs for property taxes, financing and HOA fees.

If the storage space in a smaller home isn’t adequate for all the items you want to keep, you might also find yourself paying a monthly bill for a storage unit.

Upsizing pros and cons

Lots of people want more space, including a single person who wants more space for remote work and hobbies or a household shared by grandparents, parents and kids that want a better mix of communal and private spaces.

A bigger home or yard can offer countless advantages for people who desire more space. Each person or activity can have a dedicated space. Trading the kitchen table for a home office can make a world of difference for remote workers. Plus, a larger home may allow for a guest room or suite, allowing you to accommodate visiting adult children and out-of-town friends.

Some people choose to upsize proactively. They may not need extra space today, but they anticipate a growing household or children growing from infants into teenagers. By looking ahead, these homeowners can adapt their space as their needs change—whether the kids grow up, a parent moves in or an adult child moves back home.

Increasingly, many young homebuyers choose a large home with the intent to rent out a portion of the home for additional income, according to Zillow. Many also have a long-term plan to move later and rent out the whole house.

Not surprisingly, a bigger home typically means higher bills for utilities, maintenance and property taxes. A bigger roof, longer driveway and abundant square footage all mean higher costs when it’s time to replace the roof, repave the driveway or install new flooring. One expense that’s often overlooked is spending more on furnishings and décor to fill the bigger space.

Also, all costs don’t show up in your checking account. A bigger home and yard require more time for cleaning and maintenance.

When it may make sense to stay put

While upsizing or downsizing may seem attractive in theory, there are practical reasons that might make staying in your current home a better option. For example:

• You love your neighborhood and the relationships you’ve built there.
• You can modify your home to address anticipated needs. This could mean building an addition when the family grows or adding safety features for aging in place.
• Regardless of size, a new home may be more expensive.

If you decide to upsize or downsize, make your first move a conversation with one of our mortgage loan officers. They can help you explore home loan options that fit your needs and circumstances.

 

 All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications and collateral conditions.