The New Downsizing Trend: Buying Your Next Home Free and Clear

If you’ve been thinking about downsizing — to cut expenses, be closer to loved ones, or simply make life easier — here’s a trend worth noting:

More homeowners are buying their next home in cash, skipping a new mortgage entirely. If you’ve built up equity over the years, you might be able to do the same — no mortgage, no monthly payments.

A record share of homeowners now own their homes outright.

ResiClub’s analysis of Census data shows that over 40% of U.S. owner-occupied homes have no mortgage — the highest level ever recorded. In other words, 4 in 10 homeowners are mortgage-free (see graph below).

One big reason this trend is growing? Demographics. Many Baby Boomers have stayed in their homes long enough to pay off their mortgages completely. If that’s you, you might have more buying power than you realize — and it’s time to put it to work.

Turning Home Equity into Freedom

Your home equity is one of your biggest advantages in today’s market. If your mortgage is paid off — or nearly there — you could use that equity to buy your next place in cash. That means no new monthly payment in retirement, plus:

• Lower financial stress as you get older
• Improved cash flow if you buy a less expensive home
• A faster, simpler transaction overall

Here’s how it works: sell your current home, then use the proceeds to buy your next one outright — in cash. It might sound out of reach, but it’s more realistic than you’d think.

In fact, a recent survey from John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) shows that all-cash home purchases are on the rise nationwide, with agents reporting increases in nearly every region (see graph below).

For Baby Boomers, paying cash can mean more control over your next chapter. You could choose a smaller, more affordable home with lower costs, less upkeep, and greater freedom to focus on what matters most — all while staying debt-free and stress-free.

Downsizing isn’t about giving up — it’s about elevating your lifestyle. And that’s worth exploring.

Bottom Line

You’ve worked hard to build equity in your home — now it may be time to let that hard work pay you back.

Talk to your agent about what your house is worth and what possibilities it could unlock for you today. If you chose to downsize right now, what would your ideal next home look like — and how could it make your life easier, more affordable, and more enjoyable?