I think if you are trying to stay in the area where you already live, downsizing is a bust, especially if you live in an urban area like anything in the Boston to DC area.

Downsizing only works if you're moving more rural, like to golf course communities near the shores.

Anonymous wrote:

Anonymous wrote:We're empty nesters in a $1.2M home in a NYC commuter burb. We started looking at townhouses in the area to avoid having to keep doing lawn care and exterior maintenance, and to hopefully pocket half a million or so.

Sadly, it's become apparent that "downsizing" is not much of a deal. An 800K townhouse might have only two bedrooms and a one-car garage. For three bedrooms and a two-car garage, you're going to lay out close to a million. The taxes are slightly lower than for a single-family home, but add in the HOA costs and you're not saving anything.

To really put $$$ in our pocket after the sale of our home we'd have to find something for 700K or less, and there just aren't very many really nice townhouses in that price range with easy access to the city. I see now why my lovely neighborhood in a top school district is filled with empty nesters and even grandparents still occupying their large, single-family homes. Anyone else noticing this?

A 3bd townhouse with a 2-car garage really isn’t much of a downsizing from a SFH. In the NYC area, you’d be better off finding a 55+ community that exempts you from local school taxes to save some money.

Yes and many of these 55 plus communities do have townhouse-style units.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m not sure why you assume that townhouses would automatically have that much of a price discount, just because they’re townhouses. With everything else equal (location, build quality, square footage, number of beds and baths, etc), the price of a townhouse will generally be somewhat less than a single family house, but not by extreme amounts. And why should it be too much less? Young couples can raise their kids in townhouses too.

If you want a major price discount, you’re going to have to trade off something substantial - location, square footage, # of bedrooms….

+1. Boomers don't really want to downsize. That is the reality. Just own it. I'm genx and have no plans to downsize either.

I'm gen x and want to downsize, but OP is correct: financially, it's not worth it.

I have a 3200 sqft sfh with a good sized backyard in a good school district. Lots of younger families are moving in as the old timers leave. There's been a lot of turnover. But, those old timers bought the house when houses here were super cheap, so they are making bank on the sale of the house. We would not since we bought the house 12 years ago. So, we'll end up sitting on the house until we can no longer manage the steps. Personally, I'd rather downsize now, but financially, it doesn't make sense to do it.

Another Gen X here who is still living in the house I bought 18 years ago. My starter home has turned into our forever home due to the forever increasing cost of living (bills, insurance, groceries), + kid related stuff + a variety of elder care situations.
At this point moving would be financially irresponsible and impact retirement plans. I’d rather keep living here than work until I die.

I really don’t understand your mindset that it’s only worth moving if you can cash out almost half your equity. Even if you won’t end up with a huge pile of cash, isn’t it still worthwhile to downsize to something that is less expensive and requires much less maintenance? That sounds beneficial even if it isn’t your dream scenario.

The point of this thread is that smaller places are not that much less. Plus moving costs money. The real estate selling and buying transaction costs money (realtor fees, inspections, appraisals, municipal fees attached to the sale, etc., etc.). Maintenance can be hired out (and basically is through HOA fees). So downsizing doesn't look attractive in many cases, especially if you are staying in the same COL area.

Anonymous wrote:We're empty nesters in a $1.2M home in a NYC commuter burb. We started looking at townhouses in the area to avoid having to keep doing lawn care and exterior maintenance, and to hopefully pocket half a million or so.

Sadly, it's become apparent that "downsizing" is not much of a deal. An 800K townhouse might have only two bedrooms and a one-car garage. For three bedrooms and a two-car garage, you're going to lay out close to a million. The taxes are slightly lower than for a single-family home, but add in the HOA costs and you're not saving anything.

To really put $$$ in our pocket after the sale of our home we'd have to find something for 700K or less, and there just aren't very many really nice townhouses in that price range with easy access to the city. I see now why my lovely neighborhood in a top school district is filled with empty nesters and even grandparents still occupying their large, single-family homes. Anyone else noticing this?

you aren't downsizing.

get a 2 bedroom for 650 in woodside, sunnyside gardens, queens and age in the city.

We are both almost 70 and have been in a SFH for 26 years now. Prior to that we were in a TH for 10 years. The TH community was much noisier and parking was a big issue. We love our SFH and have not had issues with the stairs so far. We have railings on both sides all the way up since my husband put them in for his father who had a stroke years ago when he visited us. Nice to have.

As for the yard, my husband loves to garden and take care of it. We have a yard that looks like a botanical garden and everyone in the neighborhood loves it. He also loves to take care of the house (he's a big DIYer). It would be very hard to take this hobby away from him.

I am also a pretty big craft person and dedicate one room to sewing and making quilts. This was a blessing during COVID.

Finally we have an adult niece living in our finished basement. She has been with us for a year and will likely be with us for the foreseeable future. Her parents are in another country helping another one of their children and grandchildren.

In sum, we will probably be here until our 80's at least (all of our parents lived into their 90's). I don't feel any guilt for living here since we are living our best lives here (and keeping the place in very good shape).

I really don't understand the point of downsizing if you're under, say, 70. And after that, why the heck would you downsize to a glorified stairwell? It makes no sense with aging.

Stay put until you are retired and can relocate to more affordable location where you can buy a property suitable for aging in place over a long period of time. That might be a smaller SFH with a main level master and less outside space to maintain, or a townhouse with no exterior maintenance and an elevator, or perhaps a condo with an elevator. Depending on your finances and prices in your retirement location you may be able to afford a spacious SFH with an elevator, if you have the $ to pay for housecleaning and yard work.

If you plan to stay where you are even if you no longer need proximity to employment, then you are constrained by your budget. Trading a non-elevator SFH for a similarly priced non-elevator smaller townhouse doesn't seem to offer much in the way of advantages.

Anonymous wrote:OP again. Yes, it's crazy. And it's keeping out young families who could really benefit from our spacious homes. Of course, with complaints about school crowding, maybe this is a blessing. But I feel for millennials right now.

Look, I don't think you have an obligation to move and make room. But what's "keeping out young families" is market demand for a large, nice house near a city. That's demand that you are contributing to.

If you don't need the space and don't commute but still want a big house close in .... it's fine to choose that! But as someone else said, own it.

People who actually want to cash out their equity and live cheaply move to 2nd and 3rd tier cities, or small condos in their preferred city.

Townhouses are a stupid way to downsize. A house with tons of stairs pretty much guarantees that if have any health problems or surgeries you can’t recover at home.

You should either get a condo with elevator access OR move away to a warmer region where you can buy a single level house.

You should be realistic about aging in place. Can you imagine a hip replacement in town house??? Recovering from a heart attack? A broken leg? Any really. It’s a one way ticket to assisted living.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Not sure about your age but consider also that townhomes have tons of stairs and that can become a problem later in life

Came on to say this. Townhouses are too vertical and you’re not getting any younger. Unless you’re looking at townhomes with elevators.

Most houses also have stairs. And you can't neglect the upper and bottom floors of houses because you'll need to clean bathrooms and do other maintenance, or you'll need to get something from those floors.

Anyways, stairs are good for you and will help you stay fit longer. I view them as a positive, not a drawback.

until you get fibromyalgia, arthritis, or a stroke.

Anonymous wrote:

Anonymous wrote:I’m not sure why you assume that townhouses would automatically have that much of a price discount, just because they’re townhouses. With everything else equal (location, build quality, square footage, number of beds and baths, etc), the price of a townhouse will generally be somewhat less than a single family house, but not by extreme amounts. And why should it be too much less? Young couples can raise their kids in townhouses too.

If you want a major price discount, you’re going to have to trade off something substantial - location, square footage, # of bedrooms….

+1. Boomers don't really want to downsize. That is the reality. Just own it. I'm genx and have no plans to downsize either.

I'm gen x and want to downsize, but OP is correct: financially, it's not worth it.

I have a 3200 sqft sfh with a good sized backyard in a good school district. Lots of younger families are moving in as the old timers leave. There's been a lot of turnover. But, those old timers bought the house when houses here were super cheap, so they are making bank on the sale of the house. We would not since we bought the house 12 years ago. So, we'll end up sitting on the house until we can no longer manage the steps. Personally, I'd rather downsize now, but financially, it doesn't make sense to do it.

I really don’t understand your mindset that it’s only worth moving if you can cash out almost half your equity. Even if you won’t end up with a huge pile of cash, isn’t it still worthwhile to downsize to something that is less expensive and requires much less maintenance? That sounds beneficial even if it isn’t your dream scenario.

With my mom's home, we put in a full bath and closet area on the first floor so she can age in place. I think that it will be a good plan. She owns a house built in 1979, so it's just not as expensive as the new builds. There's little to be gained from moving out of her neighborhood.

Plus, for me, I love my neighbors. Many have been good friends for decades. The thought of moving just because when we have retirement covered seems a bit silly.

What I want to do differently is rent a condo in a warmer, brighter place for January and February once my kids leave home. I hate the winter doldrums.

Anonymous wrote:

Anonymous wrote:This is exactly why Millenials and Gen Z have anger towards boomers. They sucked up / consumed / trashed / indebted so much in their path leaving nothing for those after them. No regard for others’ future, just assumed the gravy train would continue. And many just now realize at the first, most obvious ripples of what’s been done.

The nationwide housing crisis has been in the news for a decade or more, at least?? Young people can’t buy a home, start a family, etc because Boomers generationally punched downward. Intentional or not, it’s been done.

Generalize much? I downsized significantly and am a boomer.

My boomer in-laws have downsized 3 times! SFH>townhouse>condo>smaller condo.

But that’s anecdotal. PP is talking about a generation as a whole, not specific people.