With America’s population aging, the supply of suitable accommodation for downsizers is becoming an emerging issue.
Our population is aging due to the retirement of the large Baby Boomer generation and increased life expectancy.
The proportion of Americans aged 65 is projected to reach 20% by 2030. Centenarians could quadruple over the next three decades.
These trends have significant consequences if you are considering selling your current property to downsize and simplify your life.
This has now become a key consideration for the late Baby Boomers (1946-64) and early Gen Xers (1965-79).
Data from the US Census Bureau shows the average age of an American property owner is 51.
Analysis of this data from Lending Tree – an online lending marketplace – found eight of the 10 cities across America with the oldest homeowners are in California or Florida.
Los Angeles has the highest average age for homeownership at 54.6 years with San Diego (53.63) and Miami (53.38) not far behind.
The study found Americans tend to follow the sun when their families grow up and leave home. At around this time of life, it’s not unusual to decide it’s also time to step back from the hustle of professional achievement.
Downsizing your property in your 50s and 60s can be a great way to simplify your life, reduce expenses and prepare for retirement.
Here are seven tips to help you navigate the process:
Define your lifestyle – Consider your motivation for downsizing. Are you doing it to reduce living costs, be closer to family or have less to maintain? This will guide your choices for a new property.
Access to amenities – Think about the kind of lifestyle you want. Do you need a single-story home for future mobility? Do you want to be close to public transport, shops or community activities? Knowing your priorities will help you find a new home that truly fits your needs.
Cash question – Downsizing can be a great financial move, but it’s important to understand all the costs involved. While you may unlock significant equity from your current home, you’ll need to account for expenses like real estate agent fees, transfer tax, legal fees and moving costs.
Ideal property – When looking for a new home, don’t just consider the number of bedrooms. Measure your key furniture pieces to ensure they will fit. Pay close attention to storage as it is often a concern for downsizers. Look for properties with ample built-in closets and possibly an external storage locker or garage.
Plan early – Downsizing a lifetime of possessions takes time. Begin the process several months, or even a year or two, before your planned move.
Build a timeline – Create a detailed timeline for decluttering, selling, donating and packing. This will help you avoid last-minute stress and make thoughtful decisions about what to keep.
Expert help – Don’t be afraid to enlist help. A professional organizer can be invaluable in helping you tackle the decluttering process and make objective decisions. A real estate agent who specializes in downsizing can offer valuable advice on the local market and what properties are best for people in your age group. A financial advisor can ensure you make a sound financial decision that supports your long-term goals.