A movement is enticing many Americans from their large residences into smaller homes. The appeal of downsizing is tempting everyone from recent retirees, empty nesters to millennials.
“Since the recession, I believe people are looking to simplifying their lives and cut down on expenses,” says Ellsworth Buck, Vice President of GreatFlorida Insurance, Florida’s largest independent homeowners insurance agency.
According to the U.S. Census Bureau, the current average house size is 2,467 square feet. That is an increase of almost 1,000 sq. ft. since the 1970’s.
Despite overall growth in house size, for the first time since the recession, home size is shrinking. A less is more ideology is taking hold across the country, ushering in the trend of smaller homes.
Downsizing provides a lower maintenance lifestyle that can save time and money. Notably improving on the quality of life.
So, how do you know if downsizing is right for you?
Money is always a motivating factor. Most Americans live paycheck to paycheck. Unfortunately, financial hardships unexpectedly happen. If you experience a job loss, disability or divorce, could you afford your current lifestyle?
Downsizing can help create breathing room in your budget. A smaller home can mean spending less on your mortgage and for some paying cash for a new place. You will also spend less on utility bills. Obviously, it requires less money to heat and cool a smaller space.
Another key point, downsizing can also reduce consumer consumption. Do you have too much house? Do you have unused rooms that require staging?
Do you Feel overwhelmed by the amount of money and time spent to maintain your home? Many homeowners who have downsized comment that their weekends were consumed with house cleaning and yard work. Now they can clean the entire house in a couple of hours.
“A smaller home can make life more manageable,” comments Buck with GreatFlorida Insurance, Florida’s leading independent homeowners insurance agency.
Less time spent on home upkeep, certainly allows for more quality time doing the things you enjoy.
Creating a more comfortable living situation is an attraction to downsizing. Relocating into a smaller home will force most to get rid of clutter and stuff. A liberating process for some and an anxiety inducing moment for others. Are you prepared to surrender some of your belongings?
Also, some Americans reduce the size of their home and seek out luxury amenities. Creature comforts such as high-end finishes, no stairs or a more centrally located dwelling is a strong pull.
However, downsizing is not for everyone. Is your identity tied to being in a spacious home? Is it necessary to have plenty of room for guests?
Downsizing does not make financial sense in every situation. Homeowners often assume if they sell their current place and move into something smaller, they walk away with money, but that is not always the case.
An article from CNBC on the subject of downsizing suggests taking a look at your monthly costs of housing, rather than size alone. “Downsizing provides less opportunity in low-cost areas.” Locations where home prices, taxes and insurance tend to be lower, you could yield little financial gain.
While many see downsizing as moving backward, it can be a step forward for others.
Whether you live in a spacious dwelling or a cozy home, GreatFlorida Insurance provide competitive rates for homeowners insurance. Give us a call today.
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