Downsizing Your Home: What to Consider Before Making the Move

Downsizing is about more than moving into a smaller home. For many homeowners, it’s a lifestyle decision — reducing maintenance, unlocking equity, simplifying day-to-day living, or preparing for the next stage of life.

Whether you’re an empty nester, planning ahead, or simply ready for something more manageable, downsizing works best when it’s done with a clear plan.

This guide walks through what downsizing really involves, so you can make the move confidently and on your own terms.

What Does Downsizing Mean?

Downsizing doesn’t always mean sacrificing comfort.

It can look like:

• Moving from a two-storey home to a bungalow
  
  
• Choosing a bungalow townhouse or condo
  
  
• Reducing yard size and maintenance
  
  
• Prioritizing layout and accessibility over square footage
  
  
• Moving closer to amenities, family, or healthcare
  
  

The goal is usually less work and more freedom — not simply a smaller house.

Signs It Might Be Time to Downsize

You may want to consider downsizing if:

• Parts of your home go unused
  
  
• Maintenance feels like a burden rather than a benefit
  
  
• Stairs are becoming inconvenient
  
  
• You want to free up equity for retirement or lifestyle goals
  
  
• You prefer a “lock-and-leave” lifestyle
  
  

Downsizing is often about making life easier, not rushing a move.

How Equity Factors Into Downsizing

One of the biggest benefits of downsizing is unlocking equity.

By selling a higher-value home and purchasing a lower-priced one, many homeowners:

• Reduce or eliminate their mortgage
  
  
• Lower monthly expenses
  
  
• Free up funds for retirement, travel, or supporting family
  
  

Understanding what your current home is worth — and what realistic options exist for your next move — is a key early step.

Bungalow vs Bungalow Townhouse vs Condo

There’s no single “best” downsizing option — it depends on lifestyle and priorities.

Bungalows

• More privacy and land
  
  
• Higher purchase price
  
  
• More maintenance responsibility
  
  

Bungalow Townhouses

• One-level living
  
  
• Lower maintenance
  
  
• Shared elements and monthly fees
  
  

Condos

• Minimal maintenance
  
  
• Access to amenities
  
  
• Monthly condo fees and rules
  
  

Each option has trade-offs worth considering before making a decision.

Should You Sell First or Buy First When Downsizing?

This decision often depends on:

• How specific your next home needs to be
  
  
• Your tolerance for temporary housing
  
  
• Market conditions
  
  

Many downsizers prefer selling first to:

• Know their exact budget
  
  
• Avoid carrying two properties
  
  
• Reduce financial risk
  
  

Others buy first if the right home becomes available. Planning this properly is critical and will be covered in more detail in a dedicated blog.

What to Declutter Before Selling

Downsizing works best when it’s done in stages.

Focus first on:

• Items you no longer use
  
  
• Large furniture that won’t fit the next home
  
  
• Storage areas like basements and garages
  
  

You don’t need to downsize everything before selling — just enough to present the home well and make the transition smoother.

Ongoing Costs Often Decrease — But Not Always

While downsizing often reduces monthly costs, it’s important to look beyond purchase price.

Consider:

• Condo or maintenance fees
  
  
• Property taxes
  
  
• Insurance costs
  
  
• Utilities
  
  

A smaller home doesn’t automatically mean lower costs, so comparing monthly expenses is just as important as comparing prices.

Timing the Move Carefully

Downsizing is rarely urgent, which gives you an advantage.

With proper planning, you can:

• Watch the market patiently
  
  
• Wait for the right home
  
  
• Align sale and purchase dates smoothly
  
  

Having flexibility often leads to better outcomes and less stress.

Final Thoughts

Downsizing should feel like a lifestyle upgrade, not a compromise.

The right move:

• Makes daily life easier
  
  
• Reduces financial and physical strain
  
  
• Fits both your current needs and future plans
  
  

With the right strategy, downsizing can be one of the most rewarding moves you make.