Downsizing: Is It Right for You?

For many homeowners, there comes a time when the house that once felt “just right” starts to feel like too much. Maybe the kids are grown and out on their own, or maybe maintaining a large home has become more of a burden than a joy. That’s when the idea of downsizing often comes into play. But is it the right move for you? Let’s break it down.

Why Homeowners Consider Downsizing

• Less Maintenance – A smaller space means fewer rooms to clean, less lawn care, and fewer repairs.

• Lower Costs – Utilities, taxes, and insurance bills typically shrink along with the square footage.

• Lifestyle Shift – Downsizing often means moving into a home or community that’s better suited to your current needs, whether that’s walkability, social opportunities, or easier accessibility.

• Unlocking Equity – Selling your current home may free up cash that can fund retirement, travel, or simply peace of mind.

55+ Communities and Retirement Living

One option many downsizers explore is 55+ communities or retirement homes. These developments are designed for active adults looking for a social, maintenance-free lifestyle.

• 55+ Communities – Typically condos, townhomes, or single-family homes in neighborhoods with amenities like clubhouses, fitness centers, pools, and social events. Average monthly HOA fees can range from $200–$600+depending on amenities.

• Retirement Homes / Assisted Living – These range from independent living apartments to communities with care services included. Costs can vary widely:

  • Independent Living: $2,000–$4,000/month

  • Assisted Living: $4,000–$7,000/month

  • Nursing Home: $7,500+/month

According to the National Investment Center for Seniors Housing & Care, about 10,000 Baby Boomers turn 65 every day, and demand for these communities is growing rapidly.

Is Downsizing Financially Worth It?

If your home has appreciated in value, downsizing can be a financial win. Selling your home could give you a large equity cushion. For example:

• Sell Your Home for $500,000

• Buy a Condo for $300,000

• That’s $200,000 freed up (minus selling costs) that could bolster retirement savings, reduce debt, or fund a lifestyle change.

However, it’s important to factor in HOA fees, property taxes, and the cost of moving.

Should You Buy a Condo?

Condos can be a great downsizing option:

Pros:

• Lower purchase price than single-family homes

• Maintenance-free lifestyle

• Often in great locations near shopping and healthcare

Cons:

• HOA fees (sometimes steep)

• Rules/restrictions (pets, rentals, remodeling)

• Limited control compared to a house

Should You Move to a Tax-Friendly State?

Some retirees downsize not only their home, but also their tax bill by moving to states with lower property taxes or no state income tax.

• Tax-friendly states for retirees include Florida, Texas, Tennessee, and Nevada, which have no state income tax.

• Illinois, by comparison, has higher property taxes (average 2.07% of home value—second highest in the country).

This is why some Chicago-area homeowners sell their suburban homes, pocket their equity, and relocate to warmer, more tax-friendly states.

Downsizing in Chicagoland

For those who want to stay local, Chicagoland has plenty of options: condos in the city, townhomes in nearby suburbs, and a growing number of 55+ communities in areas like Naperville, Orland Park, and Schaumburg.

The average cost of a condo in suburban Cook County as of 2025 is around $225,000–$325,000, depending on location and amenities—significantly less than many single-family homes.

Final Thoughts

Downsizing is about more than just moving into a smaller home—it’s about choosing a lifestyle that fits your current and future needs. Whether that means a condo in the city, a 55+ community in the suburbs, or a retirement move to a tax-friendly state, the right decision comes down to your personal goals, financial situation, and long-term plans.

If you’re wondering whether downsizing is right for you, the best place to start is by understanding the current value of your home. That equity could be the key to your next chapter.