USA Downsizing IndexHow much could you save by moving to a smaller property around the country?
Property values continue to rise, and if you have lots of cash tied up in your home, then downsizing could potentially save you a lot of money.
Perhaps your children have flown the nest and left you with some empty space, or maybe you just want somewhere smaller for retirement, but downsizing can potentially be quite lucrative.
But just how do these savings vary across the country, and are there some places where downsizing might not necessarily be such a good idea?
To find out, we’ve analyzed the average house prices of both a single-family home and a condo in the 50 biggest cities in the US, as well as each state.
The US cities with the biggest saving potential
1. Arlington, Texas
Single-family home: $323,000
Condo / co-op: $163,000
The city that offers the greatest potential savings for those looking to downsize is Arlington, Texas, where a condo is around half the price of an average family home.
Arlington is perhaps best known as being home to the University of Texas at Arlington but is also the home of the Dallas Cowboys and Texas Rangers, as well as the original Six Flags theme park.
2. Las Vegas, Nevada
Single-family home: $464,000
Condo / co-op: $244,000
Another city where you stand to save just under 50% when downsizing from a family home to a condo is Las Vegas.
While it has a reputation as ‘Sin City’, Vegas is a popular location for those looking to downsize from larger homes in California, especially with Nevada having no state income tax.
3. San Jose, California
Single-family home: $1,580,000
Condo / co-op: $832,000
San Jose is amongst the most expensive places in the country when it comes to property, although there are apparently big savings to be made when moving from a single-family home to a condo.
The city is best known as being the home of Silicon Valley and while there’s a potential saving of 47.34%, you’ll still need substantial savings to live here, with an average condo price of $832,000.
The US cities with the lowest saving potential
1. Detroit, Michigan
Single-family home: $73,236
Condo / co-op: $264,000
However, not all cities in the US could see you save money by moving from a single-family home to a condo, with the opposite actually being true in some places.
This is particularly true in Detroit, where the average condo is actually 260% more expensive than a single-family home.
House prices in Detroit are exceptionally low as people have left the city following the decline of its industries.
2. Philadelphia, Pennsylvania
Single-family home: $236,000
Condo / co-op: $314,000
Another city where downsizing saving potential is lower is Philadelphia, where the average condo is around a third more expensive than a single-family home.
Philly is one of the country’s biggest cities and a centre of economic activity, as well as being known for its arts, culture, cuisine and colonial history.
3. Memphis, Tennessee
Single-family home: $164,000
Condo / co-op: $202,000
Another major city where downsizing might not save you that much money is Memphis, where houses are relatively affordable, but condos remain expensive.
Memphis is one of the most historic and culturally significant cities in the south, with a variety of distinct neighborhoods for those looking to move there.
The US states with the biggest saving potential
Single-family home: $488,000
Condo / co-op: $256,000
With Las Vegas amongst the cities with the greatest savings potential, the state of Nevada takes the top spot when it comes to states.
Here, moving from a single-family home to a condo will save you just under 50%, and as previously discussed, Nevada is a popular destination for retirees due to its favorable tax rules to help make your pensions stretch even further.
Single-family home: $416,000
Condo / co-op: $236,000
In second place is the state of Connecticut, where downsizing could save you around 43%. Connecticut epitomizes New England culture and is another popular place to retire due to its low crime rate and natural beauty.
However, it’s also well connected to New York, and also has major cities such as Hartford if you’d still rather enjoy city life.
Single-family home: $1,020,000
Condo / co-op: $620,000
The state with the third greatest saving potential is Hawaii. House prices in the island state are high, with the average single-family home costing just over a million dollars, but that figure shrinks to around $620,000 for condos (admittedly still not cheap!).
It’s easy to see why Hawaii is the sort of place you might want to retire to with its idyllic island lifestyle, but even if downsizing, it could still prove out of reach for many.
The US states with the lowest saving potential
1. New York
Single-family home: $416,000
Condo / co-op: $842,000
As was the case with cities, there are a few states where moving to a condo could actually prove to be more expensive than living in a single-family home.
This is the case in New York state, where the average condo is over twice as expensive as a single-family home, with particularly high demand in New York City itself.
Single-family home: $338,000
Condo / co-op: $502,000
In second place is Wyoming, where the average condo is just under 50% more expensive than a single-family home.
Wyoming is the least populated state in the country, largely covered by the Rock Mountains and High Plains, and is home to two of the country’s most famous national parks: Grand Teton and Yellowstone.
Single-family home: $211,000
Condo / co-op: $267,000
While condos are more expensive than single-family homes in Alabama, the gap isn’t quite as great as in New York or Wyoming and stands at 26.54%.
Alabama is known for its Southern culture and is a geographically and economically diverse state, known for its success in the world of college football.
All figures sourced from Zillow refer to Zillow’s estimated Home Value Index for February 2022, for both a single-family home and a condo/co-op.