If you’ve been thinking about downsizing—whether to lower your monthly expenses, be closer to family, or simply make life easier—there’s a trend in today’s housing market that’s worth paying attention to.
More and more homeowners are skipping the mortgage altogether when they buy their next place. That’s right: no new loan, no monthly housing payment. And if you’ve owned your current home for a while, you may be in a position to do the very same thing.
A Record Number of Mortgage-Free Households
According to ResiClub’s analysis of U.S. Census data, over 40% of owner-occupied homes are now owned free and clear—a record high. That means 4 out of every 10 homeowners no longer have a mortgage weighing them down.
One major reason for this shift? Demographics. Baby Boomers, who make up a large share of today’s homeowners, have had decades to pay off their mortgages. Many are now entering a stage of life where they want less upkeep, fewer expenses, and more freedom. If that sounds like you, you may have more buying power than you realize.
How Downsizing Turns Equity Into Opportunity
For many, home equity is the single biggest financial advantage they have. If you’re mortgage-free—or close to it—that equity could allow you to buy your next home outright. Here’s what that could mean:
- No monthly mortgage payment in retirement, easing financial stress.
- More cash flow, if you choose a smaller or less expensive home.
- A smoother transaction, since all-cash offers often close faster and with fewer hurdles.
Here’s how it works: you’d sell your current home, then use the proceeds to purchase your next one in cash. While this might sound out of reach, it’s happening more often than you’d expect. In fact, a survey by John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) found that all-cash transactions are on the rise across nearly every region of the country.
Why It’s Especially Appealing for Baby Boomers
For Baby Boomers in particular, buying in cash offers peace of mind and flexibility. Downsizing to a smaller, lower-maintenance property can free up both time and money—giving you the chance to travel, spend more time with loved ones, or simply enjoy life without the stress of debt.
And remember, downsizing isn’t about downgrading. It’s about upgrading your quality of life. A smaller home can mean more freedom, less responsibility, and the ability to focus on what matters most in this next chapter.
Bottom Line
You’ve spent years working hard for your home. Now it may be time to let your home work for you. If you’re curious about what your property could be worth and what options it opens up for your future, connect with a trusted real estate professional. The right move could unlock a simpler, more enjoyable lifestyle—mortgage-free.