DOWNSIZING WITHOUT DEBT: WHY MORE HOMEOWNERS ARE BUYING THEIR NEXT HOME IN CASH

Thinking about downsizing? Maybe you want to cut down on living expenses, move closer to family, or simply make life easier as you head into a new chapter. Here’s something you may not know: more and more homeowners today are skipping the mortgage altogether and buying their next home in cash.

Yes, you read that right—no mortgage, no monthly housing payments, and no debt hanging over your head. Sounds like freedom, doesn’t it?

Let’s dive into why this trend is growing, how people are making it work, and what it could mean for you if you’re considering a move.

A RECORD NUMBER OF HOMEOWNERS ARE MORTGAGE-FREE

Did you know that more than 40% of U.S. homeowners now own their homes outright? According to a ResiClub analysis of Census data, this is the highest share of mortgage-free homes in history. Put simply, nearly 4 out of 10 homeowners have said goodbye to the bank and hello to full ownership.

Why is this happening? Demographics play a huge role. Baby Boomers, who make up a significant portion of today’s homeowners, have lived in their properties long enough to pay off their mortgages completely. Many are now sitting on significant home equity, often without realizing just how much buying power it gives them.

Think about it—if you’ve owned your home for 15, 20, or even 30 years, chances are you’ve built up a solid financial cushion. That equity could be the key to unlocking your next dream home, without the stress of another loan.

TURNING HOME EQUITY INTO BUYING POWER

Your home is more than just a roof over your head—it’s an asset. And in today’s housing market, equity is your secret weapon.

Here’s the basic formula downsizers are using:

1. Sell your current home.

2. Use the proceeds to buy your next one in cash.

3. Enjoy life without a monthly mortgage payment.

Sounds simple, right? That’s because it really can be.

By downsizing to a smaller or less expensive property, many homeowners are pocketing the difference, eliminating housing debt, and freeing up cash for the lifestyle they’ve always wanted. Imagine retiring with:

• Less financial stress every month

• Extra savings for travel, hobbies, or emergencies

• A faster, cleaner, and more straightforward buying process

And here’s the best part: you’re not just moving to a “smaller” home—you’re upgrading your lifestyle. Downsizing often means lower utility bills, less upkeep, and fewer maintenance headaches. That’s time and money back in your pocket.

CASH IS KING: A GROWING TREND IN REAL ESTATE

If you think buying a home in cash sounds unusual, think again. A recent survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) revealed that all-cash purchases are on the rise across the country. In fact, agents report that the share of cash buyers is climbing in almost every region.

For Baby Boomers in particular, buying in cash makes perfect sense. Many prefer the peace of mind that comes with knowing their home is 100% theirs. No lender. No interest rates. No 30-year countdown clock. Just full ownership and complete control over their future.

And let’s face it: in a competitive housing market, cash talks. Sellers often prefer cash buyers because the deals close faster and with fewer complications. That gives you an edge when bidding on the home you really want.

DOWNSIZING ISN’T DOWNGRADING—IT’S LEVELING UP

A lot of people hear “downsizing” and assume it means giving something up. But here’s the truth: downsizing is not about lowering your standards. It’s about gaining freedom.

Picture this:

• A home that fits your lifestyle today, not the one you needed 20 years ago.

• Lower monthly expenses that give you more room in your budget.

• Less maintenance, so you spend weekends with loved ones instead of fixing gutters.

• The flexibility to travel, pursue hobbies, or simply relax.

Downsizing is an upgrade in quality of life. You’re trading square footage you don’t use for financial freedom you’ll definitely feel.

IS NOW THE RIGHT TIME FOR YOU TO DOWNSIZE?

The decision to downsize is deeply personal, but here are some questions to help you decide if it’s the right move:

• Do you have unused rooms or extra space in your home?

• Are you looking to cut down on expenses in retirement?

• Would a smaller home make your life simpler and easier?

• Do you want to be closer to family, healthcare, or a different community?

If you answered “yes” to any of these, downsizing—and potentially buying your next home in cash—could be a smart financial and lifestyle choice.

THE BOTTOM LINE

You’ve worked hard to build your home and your equity. Now it might be time to let that investment work for you. Downsizing without debt isn’t just a financial decision—it’s a lifestyle upgrade.

So ask yourself this: if you could design your ideal home for the next chapter of your life, what would it look like? Smaller? Cozier? Easier to maintain? Closer to family?

Whatever your answer, remember this—downsizing doesn’t mean giving up. It means gaining freedom, control, and peace of mind.

Ready to explore what your home could unlock for you? Start by finding out your home’s current value. That number might surprise you—and it could be the key to a debt-free, stress-free future.