More and more homeowners are making a smart move by downsizing to buy a home in cash. They’re selling their current home, using the equity they’ve built, and buying their next home in cash. No mortgage. No monthly payment.
Why This Is Happening
*According to the U.S. Census Bureau, about 40% of American homeowners own their homes outright with no mortgage payments.*
Did you know that over 40% of U.S. homeowners own their homes outright, with no mortgage? This means millions can downsize or move next without taking on new debt.
Over time, many people build up a lot of equity. Some pay down their mortgage. Others see their home value rise. Many do both.
That equity can be powerful. When you sell, the profit can be enough to pay for your next home outright.
Here in the Boise and Nampa markets, we’re seeing more homeowners use this strategy. With strong equity growth across Ada and Canyon counties, many are able to downsize into smaller, easier-to-maintain homes — and pay cash.
How It Works
The process is simple:
- Sell your current home. Get the most for it by marketing well.
- Take the profit. Instead of putting it toward a down payment, use it to pay for the next home.
- Buy without a mortgage. You now own a new place with no monthly housing payment (other than taxes, insurance, and upkeep).
Why Homeowners Like Buying in Cash After Downsizing.
Owning a home free and clear brings peace of mind. Here are some reasons homeowners choose this path:
- No mortgage = less stress.
- More monthly cash flow for other needs.
- Faster, simpler closings (no loan approvals).
- Perfect for downsizing into a smaller, easier-to-manage home.
Who Benefits Most?
- Homeowners with little to no mortgage left.
- Anyone whose home has gained value and built solid equity.
- Those willing to downsize to buy a home in cash and get a smaller or less expensive home.
Things to Keep in Mind
- Downsizing to buy a home in cash is not always the right choice for everyone. Think about:
- Taxes. You may owe capital gains, so check with a tax pro.
- Costs. Selling and moving takes money.
- Timing. You might need temporary housing between selling and buying.
- Cash reserves. Don’t spend all your money on the home—keep some for repairs or emergencies.
The Big Picture
Buying a home with cash can remove a huge financial burden. It lets you enjoy retirement, travel, or simply relax without a mortgage. It’s not about giving up—it’s about right-sizing your life.
Bottom Line
If you’ve built up strong equity, you may be able to buy your next home without taking on debt. Want to know if this strategy could work for you in Boise, Nampa, or the surrounding area? Reach out, and I’ll help you see what’s possible in today’s market.