Why Some Empty-Nesters Are Upsizing
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What is the main topic discussed in this episode?
Here's your Money Briefing for Wednesday, February 28th. I'm J.R. Whelan for The Wall Street Journal. After their kids are grown and have moved out, the next big purchase for many empty nesters is a smaller home.
Why are some empty‑nesters considering upsizing instead of downsizing?
But for some, a bigger home will do the trick.
They're healthier and they're maintaining very active lifestyles. And that's oftentimes leading to a need for more space. Some older adults might still be working full or part time and they want a dedicated home office. So there goes one bedroom in the house for that. And maybe they want a home gym as well. I mean, we all got used to working out at home during the COVID lockdowns.
But upgrading to a larger house means careful financial planning. We'll talk to WSJ contributor Robin Friedman about that after the break.
Being an empty nester doesn't necessarily mean it's time to downsize to a smaller house. Some are actually upsizing.
How did COVID and changing retirement lifestyles drive demand for larger homes?
Wall Street Journal contributor Robin Friedman joins me. Robin, this sounds counterintuitive. Why would somebody want to move to a larger house if, in many cases, it's just two people in their later years?
Lifestyles in retirement have changed due both to demographic trends and also to COVID, which has had an impact. Many people are retiring younger or they're semi-retired, they're healthier, and they're maintaining very active lifestyles, and that's oftentimes leading to a need for more space. Some older adults might still be working full or part time and they want a dedicated home office. So there goes one bedroom in the house for that. And maybe they want a home gym as well. I mean, we all got used to working out at home during the COVID lockdowns. So many retirees enjoy entertaining as well, whether it's a weekly poker or Mahjong game or by having family and friends over for extended visits. All of these factors create a need for more space, even for just two people.
You spoke to empty nesters who decided to move into a larger home. Why do they say they did that?
What specific space needs (office, gym, entertaining) are prompting upsizing decisions?
I interviewed a lovely retired couple who live in the villages, which is, in case you've never heard of it, a huge 55-plus community in central Florida. This couple had previously lived on a 300-acre farm, so they were accustomed to having lots of space and privacy. They initially purchased a smaller home in the villages, but when a larger one became available on a cul-de-sac lot that offered lots of privacy... They jumped at the chance to buy it, and then they added 1,600 square feet to it. So the house is now 4,400 square feet for two people with three bedrooms, four baths. It has a huge patio with a pool and a 1,200 square foot lanai. But they use all that space. They entertain frequently, and they use the outdoor space for entertaining.
Still, that's a lot of house for two people. And you spoke to a 63-year-old woman from San Diego who's upsizing, and it's just her. What went into her decision-making?
She's currently living in a three-story townhouse, and she's finding it a little bit crowded for her current needs. She's using her den as an office, and she's squeezing her workouts into a tiny portion of her living room. So she's currently looking for either a single-story home or a home that has the primary bedroom on the first floor so she has accessibility in the future. And she wants enough bedrooms to be able to have one for a dedicated home office and another for a gym.
A larger home might mean more living space and more room to entertain, but it can also mean a lot of house to maintain. How should people approach that?
Before purchasing, older adults really need to consider how much maintenance they're willing to do in retirement. And they need to be honest with themselves. Generally, the larger the home, the more maintenance required. But buyers need to remember that things can change very quickly. You may start out planning to handle routine maintenance on your own, but if you have a health crisis, that could change things pretty quickly.
How do real estate professionals say that people should map out their plan financially if they're ready to move after the kids have moved out?
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:02–0:17
2
Why are some empty‑nesters considering upsizing instead of downsizing?
0:17–1:07
3
How did COVID and changing retirement lifestyles drive demand for larger homes?
1:07–2:12
4
What specific space needs (office, gym, entertaining) are prompting upsizing decisions?
2:12–6:57
Speakers
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