A common misconception is that baby boomers significantly downsize their homes in retirement. In reality, the data tells a different story. Homeowners aged 61–70 do not downsize on average, while those 71–79 reduce their living space by only about 100 square feet. Even among homeowners aged 80 and older, the average reduction is just 300 square feet. Although many people move into larger homes during their working years, they tend to hold onto that extra space well into retirement, with only modest downsizing later in life.
Source: National Association of Realtors, 2026 Home Buyers and Sellers Generational Trends Report
This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.
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