Downsizing in 2025: What Empty Nesters Should Know About Today’s Market

For many empty nesters, 2025 marks a perfect moment to reevaluate your living situation. Maybe the kids are off to college or have families of their own. Maybe maintaining a large home is starting to feel like more of a burden than a blessing. Downsizing can offer financial freedom, lifestyle simplicity, and new opportunities—but the current market comes with both advantages and challenges. Here’s what you need to know before making the move.

🏠 Why Downsizing Now May Make Sense

High Equity, High Opportunity

Home values have risen steadily over the past decade, and many longtime homeowners are sitting on substantial equity. Selling now could unlock cash for retirement, travel, or a more manageable home without the stress of a large mortgage.

Lifestyle-First Living

Many empty nesters aren’t just looking to "go smaller"—they want a change in lifestyle. Think walkable communities, first floor primary bedrooms, low-maintenance condos, or homes closer to grandchildren. The 2025 market has seen a rise in developments catering specifically to 55+ buyers and active adults. These developments commonly include amenities such as pools, tennis courts and/or golf which residents enjoy without having to maintain.

Energy Efficiency and Smart Living

Older homes often come with higher utility costs and maintenance issues. Downsizing into a newer property can mean lower monthly expenses, better insulation, and built-in smart home features—appealing for comfort and cost savings.

📉 Market Conditions to Consider in 2025

Inventory Is Still Tight—but Shifting

Despite a recent uptick in inventory, Bergen County's housing market remains highly competitive. The combination of limited supply and strong demand continues to drive up prices, making it a favorable environment for sellers.

Mortgage Rates Have Stabilized

After years of fluctuation, mortgage rates have begun to level off. If you're planning to buy a home outright from the sale of your current property, this might not affect you. But if you're financing part of the purchase, it’s smart to get pre-qualified early.

The Downsizing Market Is Competitive

Smaller homes are in demand—not just from downsizers, but also first-time buyers. That means you're not just selling in a hot market, you're also buying in one. Working with a skilled real estate agent who understands both sides of the transaction can give you a serious edge.

But Where and How Will I Go?

It’s a question sellers naturally ask, of course. With today’s market, homes sell quickly, allowing sellers to unlock the equity in their homes. Sellers can buy themselves time to find their next home by negotiating “use and occupancy” agreements with the buyer to allow them to stay in their home for extra time after closing of the sale. Ask us about your options.

💡 Tips for a Smooth Downsizing Journey

Start Decluttering Early

The earlier you start editing your belongings, the less stressful the move will be. Begin with items you haven’t

used in the last year—and get help if you need it. There are professional organizers who specialize in downsizing transitions. We can help connect you.

Consider the Long-Term

Look for homes that offer aging-in-place features: single-story layouts, wider doorways, and low-maintenance exteriors. Even if you’re healthy and active now, it’s smart to plan for the future.

🧭 The Bottom Line

Downsizing in 2025 is about more than moving to a smaller home—it's about aligning your space with your next chapter. With careful planning and the right guidance, it can be a liberating and financially smart move. Whether you're seeking community, convenience, or peace of mind, today’s market offers options worth exploring.

If you're thinking about downsizing this year, let’s talk about your goals and how to make the most of your home equity in this evolving market. Give our team a call at 201-888-2900 or email info@gowithgill.com to get started.