10 Cities Where Retirees Can Save Big by Downsizing

There’s no doubt that there’s a savings shortage when it comes to Americans and their retirement. A recent GOBankingRates study found that more than 1 in 3 Americans expect to have $100,000 or less in their 401(k) plans by retirement age. With the average monthly Social Security retirement benefit at $1,976 as of January, it’s clear that additional savings must be unearthed somewhere to make for an enjoyable retirement.

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Fortunately, the No. 1 asset that most Americans have is their home, and the run-up in prices over the past few years has created substantial equity. Although moving to a lower-cost area can certainly stretch retirement dollars, there’s a strategy that allows you to stay in the city you already live in without having to cut anything else in your budget: downsizing.

In many American cities, simply swapping from a three-bedroom home to a one-bedroom living space can significantly boost your nest egg in one fell swoop. As many seniors don’t need a massive amount of square footage in retirement — or the maintenance and upkeep costs as well — downsizing to a smaller home in a place you love makes sense for a lot of reasons.

A recent study by Mirador Living analyzed Zillow listings from the 20 most populous U.S. cities to determine the best places for seniors to downsize to save money. After finding the average prices of three-bedroom and one-bedroom homes, the study ranked each city based on the percentage difference in housing costs.

Here’s a look at the 10 cities where retirees can save the most by downsizing.

Seattle

• Average price of 3-bedroom home: $1,052,043

• Average price of 1-bedroom home: $373,433

• % decrease: 64.5%

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San Francisco

• Average price of 3-bedroom home: $1,680,924

• Average price of 1-bedroom home: $637,229

• % decrease: 62.1%

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San Diego

• Average price of 3-bedroom home: $1,255,043

• Average price of 1-bedroom home: $483,221

• % decrease: 61.5%

Los Angeles

• Average price of 3-bedroom home: $1,544,869

• Average price of 1-bedroom home: $597,968

• % decrease: 61.3%

Dallas

• Average price of 3-bedroom home: $637,813

• Average price of 1-bedroom home: $247,101

• % decrease: 61.3%

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Phoenix

• Average price of 3-bedroom home: $540,706

• Average price of 1-bedroom home: $219,541

• % decrease: 59.4%

San Antonio

• Average price of 3-bedroom home: $378,864

• Average price of 1-bedroom home: $168,227

• % decrease: 55.6%

San Jose, California

• Average price of 3-bedroom home: $1,214,349

• Average price of 1-bedroom home: $540,987

• % decrease: 55.5%

Chicago

• Average price of 3-bedroom home: $571,442

• Average price of 1-bedroom home: $261,167

• % decrease: 54.3%

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Houston

• Average price of 3-bedroom home: $404,260

• Average price of 1-bedroom home: $186,919

• % decrease: 53.8%

Gabrielle Olya contributed to the reporting for this article.

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Source

• Mirador Living (March 3, 2025)

This article originally appeared on GOBankingRates.com: 10 Cities Where Retirees Can Save Big by Downsizing