Who would have ever guessed that going small would be the next big thing?
Baby Boomers, those born between 1946 and 1964, make up a good chunk of the population — 76 million people, to be exact. According to the AARP, 8,000 Boomers will turn 65 every day for the next decade and a half. As they reach or approach retirement age, many Baby Boomers are downsizing and taking advantage of smaller living spaces.
According to a Merrill Lynch survey, home equity among homeowners 65 and older often exceeds $200,000. Therefore, moving into a smaller home allows them to free up some of that equity to travel or pursue other passions in their retirement years.
Smaller homes also require less maintenance and come with lower monthly expenses in terms of utilities, taxes and insurance.
Also, because smaller homes tend to be less expensive, Boomers are able to move to locales that offer more of the lifestyle that they love, whether it’s somewhere that offers ample outdoor activities, or an urban setting with sophisticated restaurants, shops and cultural opportunities.
