3 Downsizing Trends To Consider
Ten years ago, when I first exposed estate managers at a national convention to the concept of downsizing, there were very few downsizing data points to draw from. In fact, the 2010 US Census Bureau data was all I had to work with…well…that and our own in-house downsizing data. Basically, I was able to extrapolate our own data on a few downsizes we had done for parents of baby boomers and, using the census bureau data of 70 million boomers, I came up with projections which are coming true, ten years later.
Here are 3 downsizing data points that are affecting close to 100 million Americas.
1. Downsizing Is Costly- One of the downsizing data points our company has noticed is that the average household downsize is more than 2 times as expensive as a lateral or, “upsize” move. The number one reason it costs more is that there are more decisions to make about what to keep and not keep. Often, this means a downsize involves the need for storage and, another move, in less than a year or two.
Months before selling your house, sort through everything and decide if family or friends want anything that you won’t need in your smaller, more efficient home. This will eliminate last minute decisions to store items that eventually might just be donated or thrown out.
2. Close To 100 million Downsizers- Not only are there about 65 million baby boomers who will be deciding to downsize, there now are another 35 million additional homeowners who are considering downsizing, due to uncertainties and health concerns. This downsizing data point is startling because this means there are more people moving than ever before, putting a lot of pressure on moving and storage companies to keep up with the demand.
A bellwether of industry statistics, Anything Research, state that last year the moving industry grew 11%, up from 5% the year before and, that 2022 will experience a more than 12% growth. With this many moves occurring there simply are going to be not enough moving companies available for the increased demand. Booking a moving company early will be essential to getting a positive moving experience.
3. Fewer and Fewer Buyers- This downsizing data point is something many have not considered but, is something that will affect home prices for those wanting to downsize, in the coming years. It is estimated that there are fewer than 70 million Americans who will consider buying homes, over the next several years. Millennials, Generation X, and Generation Y’s simply do not want to have the burden of a home. Many are not considering having a family so, a large house is not in their future. This means there will most likely be a surplus of larger homes on the market, driving prices down.
The downsizing data points indicate that there is going to be a massive redistribution of houses, as well as the contents of those homes. My advice to homeowners, back 10 years ago, was to think about selling and downsizing before the market is flooded with downsizing homeowners. Certainly, the past two years has only fueled the numbers of people who are considering a downsize.
The William C Huff White Glove Moving and Storage Company has been assisting homeowners with their upsizing and downsizing needs for over 100 years. Today, using digital technology along with a 96% positive client experience, the Company is helping many homeowners navigate the difficult process of downsizing.