Thinking about downsizing to cut costs, be closer to loved ones, or simply make life easier?
Here’s a housing trend that might surprise you:
More and more homeowners are skipping the mortgage altogether and paying for their next home in cash. If you’ve owned your current property for several years, you may be in a position to do the same—no loan, no monthly payment.
Living Mortgage-Free Is More Common Than Ever
According to analysis from ResiClub of Census data, more than 40% of U.S. owner-occupied homes are now mortgage-free—an all-time high for this data series. That means 4 in 10 homeowners own their homes outright (see graph below):
One big reason for this trend? One of the main reasons? Demographics. Many Baby Boomers have lived in their homes long enough to fully pay off their mortgages. If you’re part of this group, you may have more buying power than you realize..
Turning Equity Into Your Next Home
As a homeowner, your equity is your biggest advantage in today’s market. If you’re mortgage-free (or close to it), it could give you the power to buy your next home in cash. That means you’d still have no mortgage payment in retirement, plus:
- Less financial stress as you age
- More cash flow, if you purchase a less expensive home
- And it would likely be a faster, simpler transaction
Here's how it works. You’d sell your current house and use the proceeds to buy your next house in cash. And while that may sound like something you thought would never be possible for you, it's more realistic than you may think.
Why Cash Purchases Are Rising Nationwide
In the latest survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM), agents reported the share of purchases with all-cash buyers is climbing nationally. And those agents are seeing increases in almost every region of the country (see graph below):
For Baby Boomers especially, buying in cash gives you more control over your next chapter. You could buy a smaller, less expensive home and have lower costs, less upkeep, and more flexibility to enjoy what matters most. All while staying debt and stress free.
Because downsizing isn't about downgrading your home. It’s about upgrading your quality of life. And that’s something worth exploring.
Bottom Line
You’ve worked hard for your home. Now it might be time for it to work hard for you.
Let’s talk about what your house is worth, and what it could unlock for you today. What would your ideal home look like if you were to downsize right now?
The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.
