Homeowners in all stages of life – from first-time buyers to retirees – are seeing the merit of living in less space. Downsizing and consequently de-cluttering or simplifying, has become a popular “less is more” trend.

In the Washington Post article, “Downsizing the American Dream”, author Haisten Willis claims that the “NAHB (National Association of Home Builders) data shows the average size of new houses fell for the third straight year in 2018. Median square footage of single-family houses decreased to 2,320 after peaking at more than 2,500 square feet. ⁽¹⁾

Tahoe REALTOR^® Ryan Schiestel says that his clients are thoroughly examining whether bigger truly is better too. “Fewer buyers are looking for homes greater than 6,000 sq ft,” he says. “Buyers are tending to go smaller, in most cases despite price. For example, in one of the communities I specialize in, buyers are lining up to buy 2,500 sq ft homes listed for the same price as homes over 7,500 sq ft! I am selling homes in the 2,000-3,000 sq ft range before they even hit the market while homes over 7,000 sq ft may sit on the market for three years. I think people realize that the bigger homes require more upkeep and responsibility too, not to mention the yearly overhead.”

So, why is this downsizing trend getting more popular? It could be because these smaller homes speak to two great motivators of human behavior: cash and convenience. ⁽²⁾

► The Economic Case ⁽²⁾

According to the Center for Retirement Research at Boston College, taxes, insurance, upkeep and utility bills typically run about 3.25 percent of the value of a house, so naturally, a smaller home will help cut down on the actual cost of living.

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