Looks like a new trend is steering away the American dream of homeownership that is all about bells and whistles and done to the nines.
"Whether you are a first-time homebuyer or a downsizing retiree-there is a definite trend toward people buying and building smaller homes," said Freshome. "It's a fact, houses are getting smaller. It seems there is a new world-view developing - people are shunning the ideals of bigger is better in exchange for a more modest lifestyle, despite what is in their pocketbooks."
But aside from saving money, there are other reasons that lead people to going smaller. Here are 5 reasons to move down according to Realty Times:
A lower mortgage payment
Cutting down expenses is considered one of the major reasons for downsizing as it equates to a lesser mortgage rate. According to Investopedia, mortgage "routinely accounts for 30% or more of their gross income - often accounting for 50% of net income. Downsizing your house can have a dramatic and direct effect on mortgage expenses." "At the very least, it can result in a significant reduction in your monthly expenditures, a significant increase in your free cash flow and massive savings in interest over the term of your mortgage."
Property tax savings
With a smaller house, you may get to bring down your property tax bill if you move to a similar general area. You can further increase those savings by moving to a tax-friendly state when you reach retirement.
Savings on utilities
"A smaller home will take less energy to heat and cool," said US News. "Plus, if you buy newer appliances, that can increase the efficiency, which means lower bills and less impact on the environment."
Less maintenance
A smaller home means lesser space to maintain - that's lesser square footage to vacuum, lesser space for electronic appliances, basically lesser need to use electricity. The same thing goes for a smaller yard as yard maintenance could sum up to significant dollars including the monthly water bill.
A smaller home doesn't mean a less-fancy home
With a smaller space, you get to choose key pieces that have higher impact.
"Houses are getting smaller because people are realizing that high-end luxury and style can be achieved in even the smallest of spaces," said Freshome. "There is a plethora of do-it-yourself designers who offer-up unique ways to create a luxurious space despite small surroundings."