If you’ve been considering downsizing to save money, get closer to family, or simply simplify your life, there’s a trend you’ll definitely want to keep an eye on.

More and more homeowners are choosing to buy their next home with cash, skipping a new mortgage entirely. If you've owned your home for some time, you might have the option to do the same—no mortgage, no monthly housing payments.

A Record Share of Homeowners Are Mortgage-Free

Analysis from ResiClub using Census data shows that over 40% of U.S. homeowners have paid off their mortgages. In other words, about 4 out of every 10 people who own a home don’t have a mortgage at all—an all-time high for this type of data.

One major factor behind this trend is demographics. As Baby Boomers grow older and remain in their homes longer, many have completely paid off their mortgages. You could be part of this group without realizing just how much buying power you’ve gained. Now might be the perfect time to make a move.

How Downsizers Are Turning Equity into Buying Power

As a homeowner, your equity is one of your greatest assets in today’s market. If you’ve paid off most or all of your mortgage, you might be able to buy your next home outright with cash. This approach means you won’t have a mortgage payment during retirement, and you’ll also benefit from:

  • Less money stress as you get older

  • Extra cash in your pocket if you buy a more affordable home

  • Plus, the whole process is usually quicker and easier

Here’s the deal: you sell your current home and use the money from that sale to pay for your next one in cash. It might seem like something out of reach, but it’s actually a lot more doable than you probably thought.

A recent survey by John Burns Research and Consulting (JBREC) and Keeping Current Matters (KCM) shows that the number of all-cash buyers is going up across the country. Real estate agents are noticing this rise in nearly every part of the nation (see graph below).

For Baby Boomers, paying cash for your next home means having greater control over this new chapter in your life. You might choose a smaller, more affordable place that comes with lower expenses, less maintenance, and more freedom to focus on what truly matters—all without the burden of debt or added stress.

Downsizing doesn’t mean settling for less; it’s about improving your lifestyle. And that’s definitely worth considering.

Bottom Line

You’ve put in a lot of effort to own your home. Now, it’s time to let your home start working for you.

Ever wondered how much your current home is really worth, and what possibilities that value could open up for you today? Imagine your perfect home if you decided to downsize—what features or size would it have? Let’s explore what that could look like together.