Property values continue to rise and those looking to downsize can make the most of the current market highs, but how much you can save by downsizing can vary significantly depending on where you live. A new StorageCafe study found homeowners in the 20 largest U.S. metros could save $194,000 when downsizing from a four-bedroom to a two-bedroom home. In some markets that savings is even higher.
StorageCafe’s methodology looked at the difference between the value of a four-bedroom home versus a two-bedroom home in each metro. The study took into account property taxes over 10 years, as well as closing costs for selling and buying both properties. California led the list with San Francisco, San Diego and Los Angeles taking the first three spots on the list for large downsizing savings at $406,000, $264,700 and $239,800, respectively.
What type of savings are downsizers seeing in South Florida? Miami-Fort Lauderdale-Pompano Beach ranked fifth on the list for savings. Homeowners looking to downsize in the Miami area could save around $230.000, according to the report. Downsizing in just the city of Miami could save homeowners about $160,000, while Fort Lauderdale homeowners could save $364,000. The most profitable route in South Florida, according to the report, would be moving from a four-bedroom home in Miami to a two-bedroom home in Pompano Beach, which could save nearly $290,000. Those downsizing from Miami to Fort Lauderdale could save more than $150,000.