- Three baby boomer homeowners told BI how they managed to downsize in retirement.
- These older homeowners benefited from soaring home values and low mortgage rates.
- They succeeded in locating budget-friendly houses that offered convenient proximity to their families and communities.
Getting rid of a life's worth of stuff and shrinking your living quarters isn't most people's idea of a good time. But Holly Gates had fun saying goodbye to half of her things.
The 75-year-old retiree shared with Business Insider, “I’m likely more of a minimalist than I cared to acknowledge, so scaling down proved to be an enjoyable task for me.”
Baby boomers have been getting some of the blame for the shortage of larger homes on the market. Many of them are resistant to downsizing — opting to age in place In houses where values have skyrocketed, and those looking to downsize are struggling to find suitable and budget-friendly options. retirement housing .
However, some people have struck it rich by capitalizing on the flourishing real estate market and trading up for a residence that more adequately meets their requirements.
Two years back, Gates and her spouse sold their residence in Oceanside, California, and relocated about forty miles further north. They purchased a new home at nearly half the cost and size compared to what they had before. Their decision to relocate was not solely driven by wanting to scale down. Instead, desiring an engaged neighborhood rather than moving into assisted living, they sought out a location where they could be part of a tight-knit community with plenty of opportunities for activity among peers who enjoy walking as much as they do.
This discovery was made in Laguna Woods, a gated retirement community home to almost 19,000 people aged 55 and over located just below Irvine. The area boasts over 200 groups dedicated to various interests such as music appreciation, stargazing, and badminton. It also features seven clubhouse facilities designed for activities like golfing and playing bridge, multiple swimming pools available for use, along with an organized shuttle service transporting inhabitants to doctor’s offices and stores when needed. For her recent 75th birthday celebration, Gates hosted a gathering attended by about thirty fellow residents within one of their communal areas.
She stated, 'We face this challenge collectively and take care of one another.' She added that the significant advantages far surpass minor details such as having an additional room.'
The pair sold their beachfront house for $1.07 million and purchased their present residence entirely with cash, amounting to $525,000, as per records examined by BI. According to Gates, they must contribute $1,200 each month towards the homeowners association fees, covering property taxes, water expenses, and upkeep costs such as recent plumbing work and a new rooftop installation. This cooperative structure significantly alleviates many responsibilities and risks associated with owning a home.
Moving near family
Leaving Orange County wasn't part of Bruce Levin's plan. But when he got sick and retired from his 20-year career as a chef for Amtrak, Levin realized he wasn't up to the task of maintaining his 1950s bungalow with a pool in Buena Park.
It was 2021, and the value of his home of about 35 years had ballooned. So he sold it for $730,000 without making any repairs and moved 200 miles north to Central California to live near his daughter and two grandchildren. Mortgage rates were still low, and Levin, a widower, managed to buy an accessible, single-story home for $335,000 in the small city of Exeter. These days, he rides his electric golf cart to a local senior community for lunch and sees his girlfriend, who lives nearby.
Levin is healthier now and misses his old neighborhood and taking advantage of his Amtrak pass to hop trains around the state. But he doesn't think he can live his old, fully independent life anymore. "I'm not like I was, but I'm OK," he said. "I'm not pole vaulting, I'm not running a marathon. I walk with a cane."
He remarked, "Los Angeles has turned into a very youthful city."
Similar to Levin, Hedy Vahabzadeh, who is 72 years old, along with her spouse relocated to be closer to their daughters and grandchildren during their retirement. In 2017, they sold their residence in Houston and shifted to the Florida Panhandle region. They discovered a sprawling 11 acres of wooded land in Freeport where they decided to construct their dream house. According to Vahabzadeh, “It was quite a bargain; the area was dense with trees and very isolated.” She also mentioned that her partner had envisioned this place all along.
Her house in Freeport is a single-story with only a couple of steps leading up to the front and back porches. "We designed it to suit our needs as we get older," she explained.
These days, the area is a sought-after vacation and retirement destination, and Vahabzadeh feels they got in just before demand for homes there exploded. "It's a comfortable life," she said. "We're not trying to keep up with the Joneses kind of people. And we've never been that. So we're just enjoying ourselves."
Gates, Vahabzadeh, and Levin all benefited from lucky timing. They bought real estate before the demand for — and prices of — homes skyrocketed amid the Covid pandemic. Levin and Gates managed to cash in on the booming market at a moment in their lives when less home was more.
Vahabzadeh expressed gratitude, saying he was thankful they had done these things prior to the inflation surge. He also mentioned how lucky they were.
Would you like to share an experience related to housing? Reach out to this journalist at erelman@Pawonation.com .
Correction: March 12, 2025 — A previous version of this article incorrectly stated the location of Laguna Woods. It is actually 40 miles north of Oceanside, rather than 40 miles south.
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