Upsizing in Retirement: Why You Should (and Shouldn’t) Do It
It’s long been a common practice for retirees to downsize their homes once their careers wrap up and their children grow up and move out. And while AARP reports that a growing number of Americans are opting to age in place, there can be benefits to downsizing, like shedding the cost of a larger home and eliminating much of the work.
But you may be toying with the idea of upsizing your home in retirement. It’s less conventional, but that isn’t necessarily a reason not to do it, provided you’ve thought things through.
The upside of upsizing
Upsizing might read like a foolish move at a time in life when people are advised to try cutting costs. But upsizing could offer you a world of benefits during retirement.
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For one thing, it may be that you spent most of your life in a smaller, less expensive home for the express purpose of being able to fund your retirement nest egg and meet your remaining savings goals. But if you’ve achieved those goals, and you’re finally in a place where you can afford a larger home, why not let yourself enjoy one?
Retirement is a period of life when you’re likely to spend more time at home, not less, given that you aren’t working. So it makes sense to want a home that gives you room to spread out, enjoy your hobbies, and perhaps get a little space from your spouse or partner at a time when you’re both apt to be home a lot.
You may also have opted for a smaller home during your working years because your career kept you busy, and you wanted to minimize maintenance. In retirement, you may be eager to keep busy, and you may have a lot more time on your hands to maintain a larger home.
Upsizing might also be necessary if you want to retire closer to family. If you lived in a city your entire career for job access, you might finally have an opportunity to live near family if they happen to be located in a more rural area.
And if not, a larger home could be more conducive to extended family visits than your current home — something you might crave in retirement. A 2024 Transamerica survey finds that pre-retirees’ top dreams include spending more time with family and friends. A larger home could make it possible to host guests under your roof.
It’s also worth noting that while upsizing a home often means taking on more work, it doesn’t always equate to taking on more expense. If you’re moving from a city to a suburb or rural area, your mortgage and property taxes could shrink, even if your maintenance costs and utility bills rise.
Finally, you may find that a larger home is better able to accommodate you as you age than a smaller one. If you end up needing a walker, wider doorways could help you get around. If you have more space to move around, you’re less likely to injure yourself banging into corners.
The downside of upsizing
The obvious drawback of upsizing in retirement is potentially taking on more expenses. But there’s also the work and stress of owning a larger home to consider.
In the absence of a job, you may have more time to deal with upkeep. But whether that’s work you’ll enjoy is another story.
You may also find that as you age, your ability to tackle home maintenance starts to wane. At that point, each minor repair that crops up could become a major point of stress, especially if you’re outsourcing help every time.
You may also find that upsizing puts you in a less social environment. If you’re moving from an apartment where you’re used to chatting with neighbors to a rural area where homes are spread out, you might struggle with loneliness.
As it is, retirees are prone to loneliness because they’re not going to work every day and interacting with others. You don’t necessarily want to pile on by isolating yourself physically.
Run the numbers
If living in a larger home is something you’ve always wanted to do, and you’re confident you can afford to upsize in retirement, then there’s no reason not to do so. Avoiding upsizing simply because most of your friends may be inclined to do the opposite isn’t a good enough reason. But make sure to account for all your costs before moving forward with plans to purchase a larger home. These include:
- Your mortgage, if applicable
- Property taxes
- Homeowners insurance
- HOA fees, if they apply where you’re moving
- Utilities
- Maintenance
- Furniture, which you may need to fill a larger home
Ultimately, if the numbers add up, there’s no reason to deny yourself the joy of what could be a more comfortable home.
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