Downsizing for Retirement? 6 Best Types of Homes To Consider (2024)

Maintaining a large home can be expensive. In the past, you might’ve needed the extra space, but now that retirement is on the horizon, downsizing could be the best option.

Instead of paying more to live in a large space you no longer need, you can substantially reduce monthly expenses by moving to a smaller home. Lower utility bills, fewer maintenance costs and a lower monthly payment — if you have a mortgage — can amount to major savings.

“Getting more flexibility is the primary goal of downsizing for retirement,” said Nicholas McMillan, real estate broker and owner at Hire Realty LLC, based in Pleasantville, New York. “It’s about focusing on what is essential to you by leaving behind your professional life and eliminating some accumulated material over the years.”

If you’re thinking about moving into a smaller home for this new chapter, he said now is the time to make it happen. Here’s a look at seven types of homes to consider downsizing into for retirement.

Duplex/Triplex

If you’re looking for a home that doubles as an investment property, McMillan suggested purchasing a duplex or triplex.

“You can rent the other unit for extra income,” he said. “You can say hello to your neighbors when you cross paths.”

Of course, serving as a landlord would come with a variety of responsibilities. Before making a purchase, think long and hard about whether you want to take on this type of side hustle in retirement.

Condominiums

If you don’t want to deal with the hassle of a single family home, a condo might be your ideal new space.

“Selling your home for a lesser-value condo is a significant investment, and you can add those net proceeds to your retirement needs,” McMillan said. “Say hello to long-term savings and improved cash flow.”

Mehdi Khachani, CEO of JMK Property Management based in Miami Beach, Florida, also noted that condos are popular among retirees, because they’re notoriously low maintenance.

“With exterior maintenance often covered by association fees, retirees can enjoy a hassle-free living experience,” he said. “Additionally, condos often come with community amenities, fostering social interaction and a sense of community.”

Apartments in 55-Plus Communities

If you want to move into a new community filled with neighbors your age — at least relatively — a 55-plus community might be a great option.

“Apartments within 55-plus communities provide a convenient and sociable living arrangement for retirees,” Khachani said. “With shared amenities and services tailored to their needs, retirees can enjoy a maintenance-free lifestyle.”

He said apartments are also often equipped with security features, contributing to a sense of safety and well-being. Also known as active adult communities, he said many also offer an array of retiree-centered perks.

“These communities offer a range of amenities, such as fitness centers, golf courses and social clubs, promoting an active and engaged lifestyle,” Khachani said. “Homes within these communities are designed with accessibility in mind, ensuring a comfortable living environment for retirees.”

Plus, McMillan noted that living in a smaller space will mean less time doing chores.

“The smaller the square footage, the less space to clean and maintain, leaving more time to do the things you love,” he said. “If the apartment offers amenities like a swimming pool, workout facility, grilling area and clubhouse, you can use them without worrying about upkeep.”

Single-Level Ranch Homes

“Most of the time, people want a simple life without complications,” McMillan said. “A single-story home offers your retired life more freedom.”

He said this type of home will allow you to save hundreds of dollars per month on homeowners association — HOA — fees.

“On top of that, a single-story detached home allows you to customize your home based on your aesthetics,” he said. “This is the best home for retirees who need their peace and privacy.”

Additionally, Khachani noted that single-level ranch homes can be a great option, because they don’t require you to navigate the stairs.

“With fewer levels to maintain, these homes are a practical choice for those seeking a comfortable and straightforward living space, without compromising on independence,” he said.

Small Houses

Another single-family home option, simply opting for a smaller house — i.e., not necessarily a ranch-style home — can be a much-needed change.

“Downsizing to a smaller house is a practical option for retirees looking to reduce both living expenses and maintenance efforts,” Khachani said. “Smaller homes often have lower utility bills and property taxes, allowing retirees to allocate more resources to their preferred lifestyle activities.”

Townhouses

If neither a condo nor a single-family home feels like the right fit, a townhouse could be a good choice. Khachani said this type of home offers a sense of community and a shared set of responsibilities.

“These homes typically have smaller yards, reducing the burden of outdoor maintenance,” he said. “Townhouses are a great middle ground, providing more space than condos, but without the extensive upkeep associated with single-family homes.”

If you need extra space and don’t want a shared entry, this could provide the best of both worlds.

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