Sure, downsizing should save you money. Whatever may have spurred the urge to purge—whether it’s kids flying from the coop, a desire for a smaller place to maintain, maybe even an unhealthy addiction to “Tiny House Hunters” on HGTV—moving into a smaller place can grow your nest egg right at a time when extra cash will come in handy. The payoff can be big.
According to a study by the Center for Retirement Research at Boston College, moving from a $250,000 house to one that costs $150,000 could on average increase yearly income by $3,000 and reduce annual expenses by $3,250, saving the homeowner $6,250 a year. And maybe lots more.