My husband and I, both 68, just retired, and all our friends are downsizing their homes. Our condo suddenly feels too small for our hobbies and grandkids — is it crazy to upsize instead?

The benefits of upsizing

Upsizing can enhance quality of life, providing more space for family visits or home-based hobbies as many retirees are “realizing their dreams” of spending more time with family and friends (58%) and pursuing hobbies (43%), according to 2024’s Annual Transamerica Retirement Survey.

It allows for flexibility along the continuum of life. It could make sense for multigenerational households — say, if you’re regularly babysitting your grandchildren, as 19% of the Transamerica survey respondents are — or if your adult children help out with caregiving duties.

It could provide space for a live-in caregiver, or serve as an extra source of income if you rent out a room, basement apartment or garden suite.

Invest in real estate without the headache of being a landlord

Imagine owning a portfolio of thousands of well-managed single family rentals or a collection of cutting-edge industrial warehouses. You can now gain access to a $1B portfolio of income-producing real estate assets designed to deliver long-term growth from the comforts of your couch.

The best part? You don’t have to be a millionaire and can start investing in minutes.

Learn More

The downsides of upsizing

Moving is costly — from selling your home and buying a new one to moving costs themselves, which can range from $1,200 to $29,000, depending on how much stuff you’re moving, how far you’re moving and if you want professional movers to do the heavy lifting.

You may not net as much from your sale as you hope, meaning you may have to dip into your retirement savings or borrow money to get a bigger home.

Currently, it’s a buyers’ market, with 34% more sellers than buyers in the market, according to Redfin. As a result, it expects home prices to drop 1% by year’s end.

Meanwhile, the average 30-year mortgage rate is sitting at over 6.8%, according to data from Freddie Mac.

“High home prices and mortgage rates are scaring buyers off,” according to Redfin, while “tariff talks, layoffs and federal policy changes are among the other factors dampening homebuyer demand.”

Even if you buy a big home in a more affordable area, larger homes come with higher utility bills, maintenance and insurance costs.

If you need to hire someone for maintenance and repairs — such as regularly mowing the lawn — you’ll need to account for that in your retirement budget.

While it may be unpleasant to think about, if one spouse dies sooner than expected, or if the grandkids don’t visit as often as you counted on, then a big, empty house could also end up feeling rather lonely.

Key questions to consider before upsizing

Before upsizing, Janelle and her husband may want to answer some key questions:

• Are there other expenses we need to budget for, such as more furniture to fill a larger home?
• Can we afford this while still preserving a financial cushion for emergencies and health care?
• Are we prepared for the extra work (such as maintenance) that comes with a larger home?
• Will we still want or be able to live in a bigger space in 10 to 15 years?
• Is this larger home suitable to an aging-in-place lifestyle (e.g., are there too many stairs)?
• How will this move affect our estate plan and heirs?

Working with a financial advisor to run the numbers can help couples like Janelle and her husband determine whether upsizing would be the right move for their retirement years.