Downsizing Made Easy: More Buyers Opting for Cash Transactions

Thinking about downsizing to cut costs, be closer to family, or simplify your life? Here’s an important trend to know about:

More homeowners are buying their next home entirely with cash, avoiding new mortgages altogether. If you’ve owned your home for a while, you might have this opportunity too — no mortgage, no monthly payments.

A Record Number of Homeowners Are Mortgage-Free

Data from ResiClub’s analysis of Census figures shows that over 40% of U.S. owner-occupied homes are now mortgage-free — the highest level ever recorded. That means 4 in 10 homeowners fully own their homes without a mortgage (see graph below).

One major reason? Demographics. As Baby Boomers age and hold onto their homes longer, many have paid off their mortgages completely. You could be part of this group without realizing the buying power you now have — and it’s time to put that power to work.

How Downsizers Are Turning Home Equity into Buying Power

Your home equity is a huge advantage in today’s market. If you’re mortgage-free (or close to it), you could buy your next home with cash. This means no mortgage payments during retirement, plus:

• Less financial stress as you get older

• More cash flow if you choose a more affordable home

• A quicker, simpler buying process

Here’s the idea: sell your current home and use the proceeds to pay cash for your next one. It might sound out of reach, but it’s more achievable than you think.

According to a recent survey by John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM), the share of all-cash purchases is rising nationwide — with increases seen across nearly every region (see graph below).

For Baby Boomers especially, buying with cash means greater control over your next chapter. You could choose a smaller, less costly home that requires less maintenance and offers more freedom to focus on what really matters — all while staying debt-free and stress-free.

Downsizing doesn’t mean downgrading. It’s about upgrading your lifestyle, and that’s something worth exploring.

Key Takeaways

You’ve worked hard to build equity in your home. Now it’s time to let your home work hard for you.

Let’s talk about what your home is worth and how it could unlock new possibilities for you today. What would your ideal downsized home look like?