For most people, the American dream is not just owning a home, but owning a huge stylish house with all of the most current upgrades and renovations.
We’ve all watched TV shows where the houses were outrageously large and beautiful and wished we had a house like that. But not all of can financially afford a house like that.
According to the architecture and design magazine, Freshome, there is a trend toward buying and building smaller houses. "It's a fact, houses are getting smaller, said Freshome. “It seems there is a new world-view developing - people are shunning the ideals of bigger is better in exchange for a more modest lifestyle, despite what is in their pocketbooks.”
Well the “pocketbook” does have a lot to do with this trend; saving money being a huge motivator to going smaller. But money is not the only reason to downsize, here are 10 reasons:
1. A lower mortgage payment
Typically, a mortgage payment is about 30% or more of your gross income. Downsizing to a smaller less expensive home can drop your monthly payments dramatically. Buying a smaller house can also save money at closing and with the monthly mortgage payments.
2. Property tax savings
Since property tax is partially based on property value, a smaller house should mean a smaller tax bill. If you are able, moving to a tax-friendly state can save you even more money.
3. Savings on utilities
According to US News, "a smaller home will take less energy to heat and cool," said US News. "Plus, if you buy newer appliances that can increase the efficiency, which means lower bills and less impact on the environment."
4. Less maintenance
It stands to reason that with a smaller home, there will be less maintenance. For instance, if your smaller home comes with a smaller yard, there’s less yard work. Fewer or smaller rooms means less time cleaning.
5. You're getting older
The Administration on Aging states that “by 2030, there will be approximately 72.1 million persons 65 years or older in America alone.”
"This is a vast populace of aging citizens who will be looking to downsize, either for financial reasons or physical ones—the physical ones mainly being the desire for a small, stair-free home that is easier to get around in."
6. Less clutter
Living in a smaller space can force you to keep organized and de-clutter to keep the new place neat and livable.
7. A smaller home doesn't mean a less-fancy home
"Houses are getting smaller because people are realizing that high-end luxury and style can be achieved in even the smallest of spaces," said Freshome. "There is a plethora of do-it-yourself designers who offer-up unique ways to create a luxurious space despite small surroundings."
You may have less things in a smaller house, but that just means that what you do have can be higher quality and have a stronger impact.
8. Its trendy
Not everyone likes to be “trendy” or do something just because everyone else is doing it. But the desire for smaller houses seem to be on the rise with new homes being built smaller without decreasing the quality of living in small homes.
"If you've been shopping for a newly built home recently, you may have noticed that while home sizes are shrinking overall, the rooms within the homes don't necessarily feel smaller," said the Washington Times. "The trick, according to area builders, is that new homes are designed to maximize efficiency and open space."
9. It has historical relevance
The size of a home is rarely based on need.
According to Dave Ramsey, the average house built in 2013 was approximately 2,600 square feet. Now whether you think that’s big or not, it’s double the size of homes built in 1950 which were approximately 1,000. And remember on average families were bigger back then.
10. The money saved can pay for retirement
Again, according to US News, downsizing to a smaller home is a great way to help cut expenses, especially if you are nearing retirement.
If you have a lot of equity in the home you’re selling, that equity can go towards your retirement.
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