Recently, my parents downsized their home to a smaller house.
While on vacation in South Dakota (yeah, I vacation in South Dakota), I got to see it for the first time.
During our stay, I was surprised at how often my mother commented that “they just love their smaller house.” I wasn’t so much surprised that she felt that way about living small (I am a minimalist after all), but I was surprised at the frequency. It was a comment that she repeated over and over again during our one-week stay.
Toward the end of the week, I sat down with my mom and asked her to list all of the reasons why she is experiencing more happiness in her smaller house. And this post is the result.
Some people decide to start living small once they find that there are many advantages to downsizing. A smaller home means smaller bills and a smaller set of responsibilities.
People buy larger homes for a number of reasons:
- They “outgrow” their smaller home.
- They receive a promotion and raise at work.
- They are convinced by a realtor that they can afford it.
- They hope to impress others.
- They think a large home is the home of their dreams.
Another reason people keep buying bigger and bigger homes is that nobody tells them not to.
The mantra of the culture again comes calling, “buy as much and as big as possible.” They believe the lie and choose to buy a large home only because that’s “what you are supposed to do” when you start making money… you buy nice big stuff.
Nobody ever tells them not to. Nobody gives them permission to pursue smaller, rather than larger. Nobody gives them the reasons they may actually be happier if they downsize their home.
Here are 12 reasons why you may be happier if you downsized and bought a smaller house:
1. Smaller homes are easier to maintain. Anyone who has owned a house knows the amount of time, energy, and effort to maintain it. All things being equal, a smaller home requires less of your time, energy, and effort to accomplish that task.
2. You spend less time decluttering. And that should be reason enough.
3. Smaller homes are less expensive. Smaller homes are less expensive to purchase and less expensive to keep (insurance, taxes, heating, cooling, electricity, etc.)
4. Living small means you go into less debt and less risk. Dozens of on-line calculators will help you determine “how much house you can afford.” These formulas are based on net income, savings, current debt, and monthly mortgage payments. They are also based on the premise that we should spend “28% of our net income on our monthly mortgage payments.” But if we can be more financially stable and happier by only spending 15%… then why would we ever choose to spend 28?
5. Owning a smaller house is mentally freeing. As is the case with all of our possessions, the more we own, the more they own us. And the more stuff we own, the more mental energy is held hostage by them. The same is absolutely true with our largest, most valuable asset. Buy small and free your mind. That’s one of the benefits of minimalism.
6. Smaller homes have a smaller environmental impact. They require fewer resources to build and maintain. And that benefits all of us.
7. You free up more time. Many of the benefits above (less cleaning, less maintaining, mental freedom) result in the freeing up of our schedule to pursue the things in life that really matter – whatever you want that to be.
8. Smaller homes encourage family bonding. A smaller home results in more social interaction among the members of the family. And while this may be the reason that some people purchase bigger homes, I think just the opposite should be true.
9. Downsizing your home forces you to remove baggage. Moving into a smaller home forces you to intentionally pare down your belongings.
10. Smaller homes lessen the temptation to accumulate. If you don’t have any room in your house for that new treadmill, you’ll be less tempted to buy it in the first place (no offense to those of you who own a treadmill… and actually use it).
11. You’re less obligated to decorate. While some people love the idea of choosing wall color, carpet color, furniture, window treatments, decorations, and light fixtures for dozens of rooms, I don’t.
12. Smaller homes are in a wider market to sell. By its very definition, a smaller, more affordable house is affordable to a larger percentage of the population than a more expensive, less affordable one.
Downsizing your home and living small is a very personal decision that weighs in a large number of factors that can’t possibly be summed up in one 800-word post.
This post was not written to address each of them nor was it written as a “how to downsize your home” article.
Only you know all the variables that come into play when making your decision.
I just think you’ll be happier if you buy smaller—rather than the other way around.
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About Joshua Becker
My husband and I just moved into our first purchased home with our 3.5 month old. Our situation was a bit different. Our landlord sold out from under us and we had two months to find a new home (yes with our premie son in the mix). Average rent in our area was starting at $1750 for a one bedroom, so it was actually cheaper to buy and build equity! Eventually we will end up moving to a bigger place as our family grows (also because our HOA mandates you can’t have more than 4 people living in our condo). We definitely don’t want to move into a huge house, but a small home with a yard in a good neighborhood. Anyway, we were shocked at how much stuff we still had even though we’ve subscribed to a minimalist lifestyle for several years (it hides in the depths of the closets). We got rid of a lot and it feels great. Future dream after the kids go off the college- tiny house living!
On principle, I agree with purchasing a home you can afford. We have always done that and it has worked, however, I wish we would have purchased as our first house a house that would have caused us to stretch a BIT financially because 1. my family doubled in size of over the years 2. We planned to move and buy a slightly bigger home, but housing prices outpaced our increases in income. 3. The pain of moving is real. So I would say, look to your future needs and buy the best house you can, then buy once and stay put.
We have repeatedly tried finding a house with a smaller square footage. It seems that with a certain square footage also come other features that may or may not be desirable for the homeowners. The neighborhood is a big one. We live in about 1,500 square feet for a family of 4. We think it’s just right, but we could also be happy in less. However, houses much smaller than ours tend to be in more run down neighborhoods where neighbors don’t seem to take a lot of pride in ownership. Or there are no sidewalks for us to enjoy family walks together. Or there is not enough yard for us to garden and let our young kids enjoy some safe independence. So as much as we’d love to downsize, staying put and helping my husband to resist upsizing is the best we can do :)
I love reading all these comments! We decided to stay in our starter house from our 1993 marriage, and now I am so glad we did. It is the most cozy house at 1200 square feet. We just put out air matresses for guests. It’s been so nice to have a cushion in our budget as our kids are heading to college, too. We have been able to make some nice upgrades, in cash. We always have money to go on at least two vacations a year. We have realtors calling us daily making insane offers on our home, but we are not selling. Where would we go? I am so glad we didn’t move up like everyone said we needed to. And yes, my country blue countertops are staying because I love them!
I totally agree with you on this. There’s no doubt that small homes are seeing a resurgence as people realize how cozy and cheap they can be. Smaller homes just feel good and living in one makes it easier to be close with your family. Plus, the cost-savings of smaller homes can really add up over the long term.
My wife and I live in a 1440 sf house, and are quite happy with it. We have no kids, so don’t need anything bigger. I told a friend of mine who sells real state and has never seen my house that it is 1440 sf, and her eyes lit up. “I wish I had some of those to sell!” I go for long walks every day through mine and surrounding neighborhoods, and most houses are bigger than mine. I realize how people must feel obligated to work hard and earn a lot of money just to afford their mortgages. This is not a wealthy area, but prices are rising rapidly- I am so glad we bought out house in 1997 when housing costs were much lower. I feel real blessed.
I have one of the smallest houses in our subdivision. I receive messages on my front door about once a week from realtors with clients looking for my house size/model (the models are available on our property assessors website by address).
The reason? It attracts first time homebuyers who are trying to get into the neighborhood/school district. My house value holds even when the larger ones fall with the market!
Yup.
I couldn’t agree more. I have seen numerous neighbors and friends make the move to “bigger/better” from actually pretty large homes (1800-2000 sq. feet) to pretty massive, expensive homes. We are a family of three in an 1800 square foot home with an acre of land. I would rather have my mortgage paid off to travel than be forced to pay larger bills/mortgage. We just continue to maintain our home well and make upgrades/improvements to the home we already almost have paid off, and will have paid off prior to age 50! Yay!!
I have had a large beautiful house(4000 sq ft) and I can honestly say I felt more alone in that house than I do in my downsized home of 1750 sq ft. Personally having the larger home felt like it was for everyone else to enjoy with hosting and presenting. My smaller house gives me a sense of home and my own happiness and not to really care what others think. I could have afforded the 4000 sq ft house forever. I am happier to say I will be debt free from my smaller home in just a few years time.
I own a super cute 2 bed cottage. I can’t actually afford anything bigger. I do feel like a bit of a failure though because my 3 girls share a room. They are cool with it, but I’d love to offer them more 😞
You are providing a loving home that you are not at risk of losing because you are smartly living within your means. Sounds like a winner to me! Best to you.
I live happily in 293 square feet!
Living in multi-family construction (apartment or condominium) is an easy means to transition from a large, single family home. My last single family home was 2,700 sf/250 sm on just under an acre of land with an outdoor pool.
A promotion tool me back to my Midwest roots to live in Chicago where I had no desire to make a daily 2 hour round trip to work, so I settled in the city. My condominium was a 850 sf/79 sm one bedroom in a 45 story building with indoor pool, gym, parking. The parking was leased as I gave up having a car living in the city.
I moved after a few years to a new development, a 63 story building with indoor pool, gym, community garden, and parking, now having purchased a car, a MINI. My current one bedroom condominium is 1,245 sf/115 sm with in unit laundry, master bath, and powder room. The most significant motivation to move was that the unit is on an outside corner with 60 ft/18m of floor to ceiling windows.
I included reference to meters to consider not just what size of home USA homeowners normally live in but those in other countries.
I must take exception to the following reason people buy larger homes: They are convinced by a realtor that they can afford it. I’m a realtor. I don’t tell anyone what they can or can’t afford in a home. My clients must be approved by an independent lender for a specific amount of money based on their income and assets. How much is not for me to say. Without said pre-approval, I don’t work with them. What kind of a monster do you think realtors are, trying to talk folks into things they can’t afford? When I have a client who wants to sell his/her house for more than it’s worth based on market comps, I won’t take the job if I can’t talk them down in price. Padding my commission out of greed doesn’t work at all in the real estate marketplace, never mind that it’s unethical. It just doesn’t work like that, my friend. I like your minimalist approach but this article condemns an entire industry at the same time it displays absolutely no knowledge of the home-buying process. I hope you didn’t pull a muscle with that massive conclusion-jump you did there.
Lots of good realtors in the world—some of my best friends. Also quite a few happy to show people houses at the very top of their pre-approval range as well. And we all know how well pre-approvals worked in 2008.
We just bought last year. Some of the realtors we spoke with absolutely were encouraging us to “stretch” our budget and buy the most house we would qualify for. Technically, the realtor in this case is not showing me “more than I can afford” because a bank told us we could based on our down payment availability and income. However, what the bank says is affordable at max loan is a stretch and not smart for people who have other goals in mind. A realtor should not just rely on what the independent bank says when talking budget for a new house. Encouraging to buy at the top of the pre-qualification often is convincing someone they can afford more than they really need. It might not be intentional. You might even say it’s not the realtor’s responsibility. But it’s happening.
This just happened to me. I ended up in a bidding war that was totally provoked by the relators by means of “there’s another offer but we can’t tell you what it is.” They drive up the prices through these tactics. It’s just wrong. I fell for it bc I thought I could trust my realtor. And now I’m in a contract to buy a huge house we can’t afford. It’s insane what is going on out there.
I just moved from a 10,000 sq ft home. The upkeep was killing me. The taxes were killing me. Even with the home being paid off. I had so much furniture, and “stuff” I had an Estate sale,sold everything. I moved in a 1600 sq ft luxury apartment , ranch style. I love it..I don’t even have to change a lightbulb. I am 70 yrs old,and have found peace.
My mom still lives in our childhood home. I agree that she would be so much happier getting rid of so much stuff. It’s paid off and she could pay for a smaller one with no payments. Her yard needs so much work all the time.
Also, I believe there are lots of good and probably some bad realtors out there. That is the same in car and every other business. You are responsible for the amount you want to pay.
I think there has to be a happy balance in how, where, and what’s important in the way you live. Not trying to say anything to offend anyone, but woman require more stuff. ❤️
My husband and I just moved from a too big for us house. It had five bedrooms, a living room, family room, dining room and large kitchen, and The entire house was full of stuff. It was nice to entertain and people to visit, but the upkeep was too much. Our new house has the Great room, where the kitchen, living room and dining area is in big room. 3 bedrooms instead of 5. I absolutely love it. A lot of people ask if we miss our big house. Not at all. Got rid of 80% of our possessions and couldn’t be happier.
I am a Realtor and I resent the assumption that we “convince” our clients and customers to buy bigger houses. That directly clashes with our Code of Ethics and fiduciary duties to our client.
It is not the Realtor’s job to tell their clients they can afford a bigger house. Homeowners are qualified based on their income through the bank they are receiving the loan from. That is the job of the mortgage originator, and ultimately the choice of the client themselves.
This is also called “passing the buck.” Just because a banks says someone can afford a big house, it doesn’t mean they need it. Realtors do rely on what the bank pre-approves. The author is not saying realtors encourage people to buy more than they can afford. He’s stating that they often convince them that the extra space in a bigger house is a good idea (you never know what you need in the future, and hey – the bank says you can afford it). A savvy consumer hopefully will tell their realtor that’s not what they’re looking for. But the power of suggestion about what’s possible is strong. Realtors I interviewed last year very much were pushing us beyond our comfort zone because we should have “bought as much house as we could qualify for;” “you don’t want to regret buying too small – although we’d love to sell your house for you in a few years;” “interest rates are so low, it’s the cheapest money you’ll get.” Banks, realtors, and consumers all have different interests in mind. It doesn’t mean it’s nefarious. Yet the result sometimes is buying a bigger house than necessary because the bank and realtor said you can afford it.
Two more great advantages to downsizing:
1) I now work a 4 day week and can still cover all my expenses and save for my retirement
2) Decorating is easier and less costly (fewer furniture pieces and accessories are required) and this has allowed me to really develop a cosy space I love with quality items. My dream home in a small and affordable package.
You made some great points about a small house. I have a small house (and I mean prett small) for a long time. However, being home so much this year has made me crave a little bit more space – not a ton, but some. We’re working and schooling from home, I don’t have an office space and had to install a desk in my bedroom – I feel like I live here. We don’t have a family room and if my family is watching tv and I want to read, I have to retreat to my bedroom for quiet. My daughter is not a toddler anymore – and clothes and shoes are bigger in general, and just her own person! Our closets are teeny (we purge regularly) and we share a bathroom. Sometimes we all need a little bit more space and privacy. I kitchen is tiny, but well appointed. However, if you have more than one person trying to do anything in the kitchen you’re tripping over each other. During the warmer months we used our backyard more than ever, but we are clearly finding that how we have lived since covid impacted our lives has changed a great deal too.
I agree with you. We live in a very cute, but small house: two people, two dogs, two bedrooms (one of which is my home office). It has always been a tight fit, and just a little bit more personal space would decrease some of our stress. A closet for linens and towels. A space where my other half can work that isn’t the red leather recliner in the living room. Somewhere in the house where you can have a moment to yourself without feeling like you’re actively engaged every minute in what the other person is doing.
Covid has only exacerbated this. I think that each family has to consider their needs… and having a space that doesn’t accommodate those can add unnecessary stress to your lives.
We have thought about downsizing but the cost of a smaller home in good shape in a good neighborhood is higher than the one we live in. We purchased 26 years ago on a wooded lot by the lake and it’s almost paid off. The commission/ closing costs on this house plus closing costs on another one is a chunk of money to consider. Moving expenses and costs of redecorating another home is also a factor. We instead chose to stay and have updated our HVAC system to the highest SEER rating and our utilities are more than affordable. I think you have to look at ALL the costs of downsizing…sometimes it’s more expensive to move not to mention the emotional toll moving away from friends and neighbors. If it works financially then it’s a good option for we seniors.
This is the reason we have not moved.
Probably the most important aspect of downsizing is the amount of money saved on heating bills!
Interesting,Paul, this is a fact that we tend to forget.
It depends
On the location
Some tiny house can cost more.
In North East coast
Yes, we live in a small townhouse for years. And, vacuuming is still a big chore that I hate to handle. Dusts are from everywhere and we like it to be clean. So it usually takes us some few hours to just do that. On top it is a two levels. We might need to get a second hand vacuum or on eBay to keep on each floor!
the house is 2000sq ft with 4 bedrooms and office. So quite large in fact for a townhouse. We might look next for a ranch home .
Do you mean, a small rancher or RV, Candy ?
I truly understand how downsizing can be beneficial. I sold a large ( large by UK standards ) 4 bed home, to buy a smaller bungalow. Health wise I could no longer manage stairs…. and I’ve found most points made about the benefits of smaller homes to be totally true. That said, I suspect its also a matter of ‘ what you mean by small’. Homes in UK are incredibly small by comparison to the US to start with. Land is more expensive & in short supply. Our smaller home, whilst fine by our standards may well be compared to a large wardrobe… in the US. Whilst expectations and cultural differences are important, there is no denying I love my smaller home…. and highly recommend it.
I’m planning to invest my savings into buying a house, that’s why I’m currently looking for a real estate company that can help me out. I guess you have a point that smaller homes require less time, energy and effort when it comes to its maintenance. Also, I agree with you that with smaller homes, I wouldn’t be obligated to choose too many decorations such as carpet, wall color and window treatments for five bedrooms.
I found it interesting when you said that you get more time to yourself and less time taking care of your home if it is a small house. I hate cleaning and doing chores. I would love to have a small home that I can clean easily and then do whatever I want for the rest of the day.
We have 4 kids, and I don’t want a larger home, but more land to grow and live on. However, I can’t find a home that has enough space (bedroom, even sharing can be difficult if the room isn’t configured correctly) for 4 kids and 2 adults and more land. I’m tired of city life, but I don’t want to buy BIG just to have more land. What would you say to this situation? Thanks.
We just moved to a smaller house but on acreage to start a farm/homestead for our family. I agree it’s tough to find the right blend of house size vs land size.
While we have enjoyed the benefits of massive decluttering since we moved, and being around each other a little more, a bigger house is needed of us. Hard to homeschool in a smaller house without taking over the kitchen and that ends up a chronic mess. Hard to have quality time with your spouse when the family room and kitchen are only 15 feet from the kids rooms (this house has a poor floor plan).
So I hear you! We also think building a bigger house is worthwhile since we know we won’t be able to go spend as much time staying overnights with family for holidays with a farm and animals to tend, they’ll have to come to us. We need the room for overnight guests and right now we have the the couch and family room floor for an air mattress that’s about it!
I think the lifestyle plays a huge role in the choice between large or small house. We won’t have a new, bigger house full of anything more than what’s in our current house, it will just FEEL less cluttered/more minimal when we don’t need to have 2-3 functions in any one room! I’m all for multipurpose rooms but there’s a limit!
You made a great point that with a smaller house, there is less cleaning to do and one will be less tempted to accumulate unwanted things. My parents still live in the big house my siblings and I grew up in, and we were trying to talk them into buying a smaller house. I know your benefits will convince them, so we will share the information with them.
I loved hearing of all the benefits of a small home. My family is moving from a large home to a small modest one. We are just starting the purging process and I am feeling overwhelmed by all of our stuff. I know this will be a drastic change but am hopeful we will just love our new space and the time we will have to just be together.
I was quite confused about home size should I look for. The budget was never a constraint and I can easily purchase a large home. But I gave a thought over it and while exploring on the same I came across this great piece. Now I am definitely going for the smaller home. Thanks for sharing!!
I’ve been used to living with my parents’ home which is rather large, but I find that it’s hard to pay for the bills because it needs so much maintenance, and my utility bills are too high for me to pay with this type of house. I think I’ll buy a single-family home if there’s one for sale that’s being offered by a good professional since it’s smaller than the one I currently have. As you’ve mentioned, I can free up my schedule better because there will be less cleaning to do, so this convinces me to move into a smaller home.
We got caught up in the bigger house movement 20 years ago when we moved to the U.S. from the U.K. (where small houses are the norm). After buying a too big for us house, complete with five acres, we sold it after five years and moved back into a smaller house. People in our small midwestern town thought we were either crazy or had become destitute. We have never regretted our downsizing. We raised two children in our small house, became the hang out spot for all the teens, and hosted many parties. Family realizes we are not a hotel and we’ve become inventive with sleeping arrangements. Everyone always has a comfy bed. My now grown daughter brings her boyfriend to stay and my son frequently brings college friends home for the weekend. No one cares if our house is big or small. Friends and family come to see us.
it is too bad there are not more smaller homes on the market. I found out a lot of land CCRs require a bigger home ! this is one reason affordable housing is scarce. RE agents discourage people from building houses smaller than 3 bed, 2 bath . It is an uphill battle from now on. The demands going to exceed the supply imho
We have two kids in middle school, a kid in elementary school, a dog and a bunny. We moved into a bigger house because we felt we needed the space. My concern about downsizing after they move out (which I absolutely want to do), is how to host them when they come visit, especially once they’re married and have their own families. My mom lives in a small house and it’s challenging for us to visit her. Thoughts?
Downsize to where you have a spare bedroom and maybe a sofa bed. If that’s not enough, family can stay at an airbnb.
You will have the advantage of being able to plan ahead to have a space that works for your family when you downsize. Plan for Murphy beds that double as bookcases, a pull out couch, or a closet spot for air matresses. Your family won’t mind the sleep arrangements if you don’t seem inconvenienced when they visit. Treat every visit like a giant slumber party!
I downsized from a 3 bedroom to a 1 bedroom with a little study nook. Love that it’s forcing me to get rid of stuff that I haven’t used in years. Bit of initial pain as I didn’t get rid of it before I moved but gradually selling it all so making a bit of extra cash whilst paying significantly less cash on rent. For how often I have visitors stay having a whole extra bedroom makes zero sense too.
Plus, small homes are more aesthetically pleasing.
My mom has been thinking of selling the house to move to a smaller house. It was awesome you elaborated that small houses don’t require much maintenance, and they cost less. With that set, we will reacj¿h out to a real estate agent so my mom can find a small house that suits her needs.