Downsizing vs Aging-in-Place: Considering Retirement

The older population in the United States is growing rapidly, with the number of seniors (65+) expected to nearly double by 2060. Life expectancy is also on the rise. As a result, many homeowners approaching retirement are faced with a big decision:

“Should I stay in my current home and age in place — or downsize to something smaller?”

At first glance, the tradeoffs seem clear. Downsizing can mean less upkeep, lower utility bills, and fewer responsibilities. Aging in place, on the other hand, offers comfort, familiarity, and community — but may require costly modifications to ensure safety and accessibility.

Let’s take a closer look at the challenges and opportunities that come with each path.

Downsizing Dilemma: Housing Challenges & Senior Living Options

If your household has shrunk to one or two people, downsizing might feel like the natural next step. A smaller space could mean less to clean, no yard to maintain, and possibly a lower cost of living.

You might also gain the flexibility to relocate — maybe closer to family, or to a more temperate climate.

But buying a new home today isn’t always easy or affordable.

Rising mortgage rates and inflation have made it harder to sell your current home and move into a new one, especially with the extreme housing shortage in many areas. And while you may be looking for a modest home, small, single-level homes are increasingly rare, as developers tend to focus on larger properties or high-end builds.

Apartment living comes with its own hurdles. Nationwide, zoning restrictions severely limit the availability of multifamily housing — especially the kind that’s affordable, accessible, and well-located.

Meanwhile, senior living facilities continue to evolve, offering increasingly attractive features: social programming, wellness staff, access to care, and beautiful amenities. These can be excellent options for seniors who value community and convenience — but they often come with luxury price tags.

One recent New York Times article profiled a high-end senior community where monthly rents range from $7,900 to over $16,000. Even more modest options may require six-figure upfront payments, making them inaccessible for many seniors on fixed incomes.

Aging in Place: Familiarity, Flexibility, and Financial Reality

According to AARP, nearly 90% of seniors want to age in place — and it’s not just about the house itself. Staying put means maintaining the relationships, routines, and independence that define your daily life.

There’s a powerful appeal to living in a space you already know, in a neighborhood where you feel secure. Familiar surroundings can make everyday errands easier and reduce the stress that comes with major life transitions.

But aging in place requires planning, preparation, and potentially significant investment.

Start by considering your future needs:

• Will you require help with daily activities or household chores?

• Can your home be modified to accommodate changes in mobility?

• Are there local services available to support you — transportation, meal delivery, in-home medical care?

If your home has stairs, tight bathrooms, or narrow hallways, it may need upgrades like:

• Grab bars and railings

• Widened doorways

• Walk-in showers

• Chair lifts or stair lifts

• Improved lighting and flooring

Fortunately, there are resources to help.

Organizations like Habitat for Humanity’s Aging in Place program, USAging, and the Eldercare Locator offer referrals, funding assistance, and helpful guidance. Local and state agencies also often provide support — especially if you’re on a limited income.

Financing the Next Chapter: Tapping Home Equity

A major factor in any retirement plan is how to afford it — and for many older adults, that starts with their most valuable asset: their home.

Yet as the Urban Institute reports, most retirees aren’t financially prepared for the rising cost of housing, care, or daily living. Mortgage debt is also more common among today’s retirees than in decades past.

Home equity can help. But traditional tools like:

• HELOCs (Home Equity Lines of Credit)

• Cash-out refinances

• Home equity loans

…often add new debt, monthly payments, or interest rate risk — which may be difficult to manage on a fixed income.

New Options for a New Kind of Retirement

Unison offers a modern approach to home equity — giving homeowners access to flexible, innovative solutions designed to support aging in place, downsizing, or simply making retirement more affordable.

Unison offers options like:

Equity Sharing Agreement (ESA)

Convert a portion of your home’s value into cash with no interest and no monthly payments. You repay when you sell or settle the agreement, and Unison shares in your home’s future change in value — whether it goes up or down.

This can be an excellent fit for seniors who want to age in place but need funds for renovations, in-home support, or other retirement needs.

Equity Sharing Home Loan (ESHL)

Prefer a more traditional loan structure — but with less financial strain? The ESHL offers monthly payments that are typically half those of conventional loans, by sharing in your home’s future appreciation instead of charging high interest rates.

This may appeal to homeowners looking to downsize with help from a bridge loan — or to consolidate other debts into one manageable, long-term solution.

Whether you’re weighing renovations, considering a move, or just want a little more breathing room in retirement, Unison can help you put your equity to work without compromising your lifestyle or your long-term stability.

This content is provided for general informational and educational purposes only and is not intended to serve as financial, investment, legal, tax, or lending advice. The information presented may not apply to your specific situation, and actual outcomes can vary based on individual circumstances, market conditions, and applicable laws. Home equity sharing agreements and loans involve risks, including the potential loss of future home appreciation or other financial implications. Terms, availability, and eligibility for any products mentioned may differ by state, lender, or other factors. We strongly recommend consulting with a qualified financial advisor, attorney, or licensed professional before making any decisions or entering into agreements. Unison Mortgage Corp. is a licensed lender (NMLS ID 2574289); this article may include promotional content related to its services.