Perhaps you’ve decided it’s time to simplify your home life, or maybe you’ve grown tired of small-scale living and have your sights set on a bigger place with room to grow and entertain. Regardless of your motivations, phase in life, or other factors, deciding to move into a bigger or smaller home brings many of us to a crossroads.
For some, it is purely a financial decision, and for others, the variables are vast. Here are a few key factors that often drive decisions to upsize or downsize:
If high-rise, downtown living is where you want to be, there are obvious sacrifices that need to be made in order to accommodate your location preferences. While you may not necessarily have to sacrifice square footage, you will generally pay a premium on that square footage and will lose other things, like your own private yard. Of course, the opposite is also true, if you want a bigger home and bigger yard, you have to be willing to move farther out.
Phase in Life
Traditionally, many first-time homebuyers have opted to purchase a “starter” home before upsizing after a few years. Recent data suggests that younger consumers may be bucking that trend by jumping right into the larger home and putting a premium on space. Conversely, many empty-nesters choose to downsize once their kids are out of the house.
The economy is an obvious driving force in determining what a person is able to afford. When the economy is good, we see an uptick in larger home purchases. As we saw during the recession, the market slows when the economic outlook becomes less rosy. Interest rates have a significant impact on a person’s willingness to take on a larger home and mortgage.
The decision to upsize or downsize one’s home also signifies a shift in one’s life, which can be emotionally taxing for some. In either instance, however, there can be significant opportunities when making a move to a bigger or smaller home. If you’re considering a move, get in touch with me today to discuss how we can find the best fit for you.