4 days ago
They downsized to save money and simplify their lives. Here's what they wished they'd known
In 2015, Michelle Thorne was living alone in a four-bedroom house in Barrie, Ont. Her adult children had moved out, and she found herself using only half the house.
Ms. Thorne, who was working as a teacher, decided to downsize. She bought a three-bedroom townhouse in a bustling area nearby shops and services – features she thought would be useful once she retired.
But soon after moving in, she realized something was missing. 'As soon as I arrived, I started missing the peace and quiet of my old neighbourhood. I used to sit outside and enjoy the nature around me, and I missed that almost immediately.'
It was just one of many adjustments for Ms. Thorne. She struggled with the lack of privacy and the tighter living space. Her new garage was too small for her car and barbecuing meant dragging the grill onto a shared driveway. She'd hoped the move would bring a better financial return but barely broken even – and felt a loss of control as the condo board took over maintenance decisions.
Downsizing is a popular choice for those looking to simplify their lives with less upkeep and lower costs, especially after children have moved out. A 2024 survey of home-sellers by online real estate platform Wahi found 37 per cent of respondents cited downsizing as the leading reason to sell their home. This trend is particularly noticeable among older Canadians, with 69 per cent of downsizers aged 55 and above.
But some are left wondering whether the move to a smaller property is truly worth it. A 2022 survey by HomeEquity Bank found that 41 per cent of respondents admitted they were unaware of the true costs associated with downsizing.
Jacqueline Watson, a Toronto-based realtor, says she often sees clients rush into downsizing without fully considering the costs and challenges of adapting to a smaller living space.
She notes one of the most overlooked parts of downsizing are the unforeseen financial costs. 'If you have a mortgage, what penalties are you looking at? Are you emotionally attached to your stuff – and if so, how much would you pay to rent a locker to store it? Have you thought about what the land transfer taxes may be?' She adds that costs such as moving expenses, land transfer taxes and condo fees can quickly add up.
For seniors, she further advises factoring in a budget for accessibility renovations, such as installing chairlifts, to ensure the home remains functional as they age.
Danielle Mah, an educational assistant and creator of a YouTube channel focused on minimalism, had to make sacrifices when she and her husband moved in 2021 from a 2,000-square-foot house in Calgary to a townhouse half that size in Chilliwack, British Columbia. The move was driven by the high costs of utilities and maintenance of their previous home.
Ms. Mah says they struggled to fit years' worth of belongings: 'Even after selling items, reducing clothing and letting go of furniture, the real challenge was realizing we no longer had the space for what was left.' During the move, she kept only 50 of her 200 houseplants due to space and logistical constraints.
Instead of paying for storage, they gave away some belongings. Ms. Mah advises others planning similar moves to gradually declutter and embrace minimalist strategies such as buying versatile clothing and vacuum-sealing off-season items.
Downsizing can also limit the ability to entertain. In 2018, Claudia Espindola, an operations manager, relocated from a three-bedroom townhouse in the Greater Toronto Area to a two-bedroom pre-construction condo in Guelph, Ont., after her job went remote and her children moved out.
After moving into the condo, Ms. Espindola quickly realized the absence of a distinct separation between the living and dining areas: 'The biggest challenge was the lack of space for entertaining. I could fit two people comfortably, but I had to buy foldable tables and chairs to set up every time someone comes over.'
While her condo offers a party room, each use incurs a $100 fee, as well as a deposit and cleaning charge. She is now hunting for a larger home that includes a dedicated dining area to better accommodate guests.
For Ms. Thorne, her first downsizing experience in Barrie helped her make a more informed choice for her next move. In 2017, she moved into a two-bedroom bungalow in a quiet, parkland area near the waterfront. She enjoys being surrounded by nature, even if it means handling the extra work of maintaining the property and replacing yard equipment.
The teacher, who retired two years ago, says she regrets prioritizing retirement over her immediate needs. When she downsized, she was focused on a future without car access, even though she plans to drive for at least another decade: 'I was too focused on the future and not paying enough attention to what I needed in the present.'
Now settled into her home, she says she would advise others to carefully consider what truly matters to them before deciding to downsize: 'It's a decision that can't be thought of from either a strictly financial side or lifestyle side. They're impossibly intertwined, and I'm not sure anybody can know for sure how much things really mean to them until they lose them.'
