Empty nesters and retirees downsize to smaller homes to reduce expenses and simplify their lifestyles. When a homeowner “rightsizes,” they’re looking to balance space and functionality in a way that better fits their current lifestyle and needs. Maybe it’s changing the home’s layout because of health and mobility concerns or converting a spare room into something a little more usable.
Learn more about who should consider rightsizing and the possible benefits you could experience.
— What is rightsizing?
— What’s the difference between rightsizing and downsizing?
— Who should consider rightsizing their home?
— The benefits of rightsizing.
— Rightsizing strategies.
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What Is Rightsizing?
“Rightsizing is about finding the perfect balance between your living space and your lifestyle, ensuring that your home supports your well-being and meets your evolving needs over time,” says Heather Aiello, founder of The Organized You, a Boston-based home organization company. Basically, this means fully utilizing your space, whether in your current home or a newly purchased home, to match your lifestyle.
What’s the Difference Between Rightsizing and Downsizing?
In most cases, downsizing involves moving to a smaller home to save money and manage less property, says Fiona Dogan, global real estate advisor at Julia B. Fee Sotheby’s International Realty in New York. Most people downsize to a smaller home in their later stages of life, such as after the kids move out or after retirement.
Both downsizing and rightsizing can help you declutter and better manage your life. However, rightsizing may or may not mean a smaller property and doesn’t always save money.
“I recently worked with clients in the New York metro area who sold their large home in Westchester County only to build an equally expensive large home in Florida. Another couple built a new home in California to accommodate a new sunny retirement lifestyle,” Dogan says.
Who Should Consider Rightsizing Their Home?
There are several reasons why a homeowner may consider rightsizing, or “simple-sizing,” as Bryson Taggart, a licensed realtor in the Phoenix area and Opendoor’s retail partnerships partner services manager, calls it. “I recommend homeowners first decide what lifestyle they’re looking to maintain or change, which can help shape this process,” Taggart says.
Aiello says new empty nesters may feel the need to rightsize to a smaller home after their children move out, or some may find maintaining a larger home too burdensome. The reason could also be crisis-driven, like an unplanned lifestyle change due to a health event, Dogan adds.
Retirement is another common reason to rightsize. “Your lifestyle, needs and priorities change as you retire, making it an ideal time to reassess your living situation,” Aiello says.
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The Benefits of Rightsizing
Regardless of the reason, rightsizing comes with perks.
Improved health: One of the biggest benefits of rightsizing, or simple-sizing, can be to improve health, Taggart says. According to Opendoor’s 2023 survey on simple-sizing, health concerns (57%) became the biggest factor driving the decision to simple-size, which Taggart noted is especially important for seniors and retirees.
“Respondents also told us there is one clear and salient benefit above the rest when it comes to living an ideal life: health and quality time with loved ones,” he says.
Improved quality of life: A home that matches your needs and preferences can give you a much more comfortable and enjoyable life. “Having a home that is easier to take care of will free up time for you to enjoy other activities,” Aiello says.
Financial savings: You could save money and have more disposable income if you rightsize by moving to a more affordable property. Aiello says you could see this in the form of reduced housing costs, including monthly mortgage payments, utility bills and maintenance expenses.
Reduced clutter and easier upkeep: Cleaning, organizing and reducing clutter in your home can make you feel better about your space and allow you to use it more intentionally.
Opportunity for a fresh start: For many homeowners, rightsizing gives them a fresh start. “Rightsizers often become energized, feeling like they have a new lease of life,” Dogan says. “They remain active, enjoy more time with parents or kids and generally live their best life doing what they like to do.”
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Rightsizing Strategies
If you plan to purchase a home as part of your rightsizing strategy, Dogan recommends discussing your household’s goals with your real estate agent to make sure everyone is on the same page. When developing a strategy, you should also take real estate market conditions into account as well as timing the purchase and sale accordingly. “That may mean selling now and renting in your new, desired area to try before you buy, for example,” Dogan explains.
Here are some rightsizing tactics to help make your space more functional, whether you plan to purchase a new home or stay in your current one.
Assess your current and future needs: Ask yourself these questions before making changes to your home: Are you using every room in your house? How often do you have overnight guests? Does your home’s layout make daily living harder? Are certain spaces only for storage? Could there be potential health changes in the near future? The answers will help you better understand your priorities and where you can make some adjustments.
Let’s say you have a living room where your family spends most of their time and a formal living room that’s only used for special occasions. You could transform this space into something more useful, such as a home office if you work from home or an extra bedroom for a growing family.
Prioritize possessions: Aiello suggests evaluating your belongings and prioritizing items based on sentimental value, utility and necessity.
Multi-purpose spaces: To simplify your home, Taggart recommends functional layouts with multipurpose spaces that allow you to reduce square footage without giving up your favorite possessions. For example, Taggart says you can convert a home office into a guest bedroom with a Murphy or day bed.
Storage solutions: Explore effective storage solutions to keep your home organized and clutter-free, Aiello says.
Low-lift renovations: Taggart also suggests low-lift renovations to unfinished basements or use attics and staircases for storage. This allows you to free up space without putting in too much effort.
Remember, nothing has to be forever. If your needs change, you can always tweak the design or use of the room in the future.
“Rightsizing may take more time and more homework than downsizing, which is generally just about the numbers,” Dogan says. “Changing your lifestyle requires deep thinking and emotional investment — akin to making a wish list for your future.”
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Rightsizing Vs. Downsizing Your Home originally appeared on usnews.com
