Home buying tips for the new empty nester

Sending your youngest child off into the world is a major life milestone that comes with a complex mix of emotions. This makes you an empty nester - a parent who now has a child-free home after the kids move out and start lives of their own. As you get used to the quiet, your day-to-day home and lifestyle needs will inevitably change.

According to a study from Neighbor, more than 70% of empty nesters renovate their current home to meet their changing needs now that there are no kids around.  If rooms are sitting empty and you feel like you have too much space, you may decide to downsize and find a new home all together. Here’s a look at some of the benefits of downsizing and some home buying tips for empty nesters.

Common needs of empty nest homeowners

Empty nesters certainly don’t all have the same needs, but they often have some shared goals as they navigate this transition. When you start searching for the right empty nest house, you may find yourself looking for ways to simplify your life, maximize your budget, and prioritize your own well-being over the logistical demands of raising a family.

Here are a few of the common needs and wants of empty nesters:

• Moving to a more desirable neighborhood: In the past, your housing choices may have been dictated by proximity to local schools and kid-friendly amenities. With the need to consider school districts out of the picture, empty nesters may want to find their next neighborhood based entirely on their own interests, such as walkability, dining options, or a greater sense of community.
• Freeing up capital: Being an empty nester may mean you are now helping pay for college or working to pad your own retirement accounts. You may want to liquidate your largest asset - your current home - to help free up the money necessary to do both at once.
• Simplifying their living space: Having fewer people in the house means you may want less space to clean, heat, and maintain. Many empty nesters decide to downsize to a smaller property simply because it makes everyday life much more manageable and stress-free.

Benefits to downsizing as an empty nester

Leaving a longtime family home can be a tough decision that requires weighing memories and nostalgia with practicality and financial freedom. A recent study from Regency Living found that only 30% of empty nesters choose to downsize, but more than 80% of those people are happier afterward. Here is a closer look at the undeniable benefits of going smaller.

Access equity

Selling your current home is one of the most direct ways to access all of the equity you’ve built in your home with each mortgage payment. You can use these funds to purchase a new home outright, fund a college education, invest for retirement, or whatever else you’d like. Downsizing from a house that’s bigger than you need can offer financial security. If you take some of the equity from your home sale and put it into a new primary residence, you may even be able to avoid capital gains tax.

You can also access some of your equity through a cash-out refinance if you prefer not to move. Just acknowledge that most lenders won’t let you access all your equity this way, and you’ll typically need to keep at least 20% equity in the property to qualify.

Less house to maintain

If you’ve raised a family, you may have needed a minimum number of rooms in your home. Reducing that number can help alleviate what’s required when it comes to cleaning and maintenance. Having a smaller home can also translate to lower utility bills. According to Solar Tech, the average cost of home utilities is about $2.00 to $3.50 per square foot monthly, so downsizing can help you save on ongoing energy costs.

Beyond utilities, downsizing can also significantly reduce maintenance costs like landscaping, homeowner association (HOA) fees, and routine maintenance repairs, HVAC servicing, and exterior painting.

Lower property taxes

The amount you must pay in property taxes is directly based on the assessed value of your home. By moving to a smaller, less expensive home, you may be able to significantly lower your annual tax burden. This can give you more breathing room in your monthly budget.

Beyond just buying a cheaper home, empty nesters can reduce their property taxes by relocating to an area with a lower tax rate. For example, in California, moving from Imperial County to neighboring San Diego County reduces your average property tax rate from 0.83% to 0.67%.

More accessibility

As a homeowner ages, a single-level property may become more desirable to avoid navigating stairs daily. Downsizing can allow you to choose a different floor plan to account for your current and future needs, rather than having to spend money to retrofit your current home.

Empty nesters may also want to change other features – like whether they have basement laundry or their access to their backyard. Starting fresh gives you the ability to prioritize everyday convenience.

What real empty nesters had to say about downsizing

We surveyed 1,017 homeowners who moved, downsized, or changed homes since becoming empty nesters.

39.2% of movers say their monthly housing costs decreased a lot after moving, and a clear majority (69.7%) report at least some decrease. 60.6% agree that moving as an empty nester is cheaper than staying put.

You might be wondering if some homeowners regret moving after becoming empty nesters. 44.9% of respondents said have no regrets at all. Among those who did say they felt regret, the most common form is emotional, not financial — 22.5% miss their previous home, neighborhood, or community.

Those who expressed regret about selling their home to become empty nesters were often previous homeowners who became renters. Among that group, only 22.4% said they have no regrets. Current renters are 2.1 times more likely to regret renting instead of buying.

Empty nesters who moved specifically for lower housing costs largely got them - with 60.2% saying their housing costs decreased a lot. Conversely, those who moved for a lifestyle change or to be closer to family rarely saw the same financial wins.

Home buying tips for empty nesters

If you're a recent empty nester who’s ready to explore the housing market, here are some tips to help you get started.

Check current interest rates

If you’re looking into buying a new home, you’ll want to check current mortgage rates to see where the market is at. If rates have dropped since you took out your current mortgage, you could stand to save a considerable amount on your new home. On the other hand, if rates are significantly higher now, that could affect whether it’s financially worth it to downsize.

For example, imagine a couple who is selling a home with a $300,000 mortgage at 4.25% interest and wanting to buy a smaller home worth $225,000 with a 6.25% interest rate. Because of the higher rate on the new loan, their monthly payment might not drop as much as they initially expect.

As of 2026, average mortgage interest rates continue to fluctuate around 6.5% to 7.0%, You can use the Rocket Mortgage home affordability calculator to help you figure out how much you can comfortably afford in today’s market if you choose to downsize.

Compare selling to refinancing

Downsizing isn't the only way for an empty nester to save money. Before making a final decision, it’s a good idea to compare the costs of refinancing versus selling and buying a new property. Depending on market conditions, it may be more affordable to pay closing costs on a refinance loan to access your equity versus buying a new property entirely.

Take a few minutes to check out the Rocket Mortgage refinance calculator to see if you can lower your monthly payment or tap into cash without moving.

To make an informed decision, carefully it’s important to compare the costs associated with both paths.

Typical costs associated with selling and buying a new property:

• Real estate agent commissions
• Closing costs for the new mortgage
• Moving costs and professional packers

Typical costs associated with refinancing:

• Closing costs for the refinance loan
• Potentially higher interest rate than your original mortgage
• Conversely, you could also secure a lower interest rate and save money without selling

Calculate how much space you need

Before deciding to move, an empty nester should calculate exactly how much space they need. While the newfound freedom of being an empty nester might make it tempting to downsize significantly to save money, you still want to be comfortable in your new environment.

Important factors to consider include:

• Space for guests, like visiting children or future grandchildren
• Outdoor space for relaxing, gardening, or entertaining friends
• Amenities, such as a home office, a hobby room, or a pool

To help you do a ballpark calculation of how much space you may need, give some thought to standard room sizes. For instance, the average size of a living room is about 216 square feet, according to Angi. Understanding the square footage, you need can help prevent you from downsizing too drastically and feeling buyer's remorse.

The bottom line: Downsizing can make your empty nest more manageable

Becoming an empty nester can be an emotional experience – but it can also be a financial opportunity to focus on your own goals, hobbies, and lifestyle. While many homeowners choose to renovate their current space, downsizing to a smaller home can be a way to tap into your home equity, lower your monthly bills, and reduce the amount of necessary home maintenance. Checking current interest rates and comparing the costs of moving versus refinancing can help you confidently make the best financial decision for your future.

If you’re an empty nester looking to buy a new home for your next chapter, you can start your mortgage application with Rocket Mortgage today.

Methodology

The survey results in this report are from a Rocket Mortgage and Redfin survey conducted by iPullRank in June, fielded to a nationally representative sample of 1,017 U.S. residents who meet the following criteria:

• They are already empty nesters who have adult children who no longer live at home.
• They previously owned the home they lived in before moving after becoming empty nesters.
• They have already moved, downsized, or changed homes after becoming empty nesters.
• They are involved in household financial decisions.

Respondents answered 17 questions about the housing-related decisions they became empty-nesters.

Refinancing may increase finance charges over the life of the loan.