Key Takeaways
| Factor | Summary |
|---|---|
| Emotional Impact | Leaving behind memories, social ties, or a family home can be difficult |
| Economic Advantage | Can free up equity, reduce bills, and maybe go mortgage-free |
| Political & Market Landscape | Ireland’s tight housing market right now adds both urgency and complexity |
| Property Options | Bungalows, apartments, modular homes, retirement villages, tiny homes |
| Risks | Limited supply, loss of space, family objections, unsuitable homes |
What is Downsizing or Right-Sizing?
Downsizing or right-sizing, as it’s increasingly being called, is the process of moving to a smaller, more manageable home that better suits your current life needs. However, in today’s Irish context, this decision can also be wrapped up in complex emotions, politics, and property market pressures.
With long social housing waiting lists, high house prices, and a shortage of suitable homes for both older and younger buyers, choosing to downsize is no simple task.
Why People Downsize in Ireland
- Mortgage Freedom – Many Irish homeowners aim to sell a large home and purchase something smaller without a mortgage.
- Ageing Population – Older citizens find large homes difficult to maintain and want to be closer to services or family.
- Family Proximity – Being near children or grandchildren becomes a top priority for retirees or empty nesters.
- Health or Accessibility Needs – Mobility issues may make it necessary to move into a single-storey or ground-floor apartment.
- Lifestyle Shift – Simplifying life, lowering utility bills, and moving to community-centric areas.
Reasons Why You Should Not Downsize (Yet)
| Reason | Explanation |
|---|---|
| Limited Supply | Suitable smaller homes like bungalows or well-located apartments are in short supply in Ireland at the moment. |
| Overcrowded Areas | Popular coastal downsizing locations like Greystones, Kinsale, Dingle & Roundstone – as well as commuter belts are also overbooked. |
| High Transaction Costs | Selling, buying, and moving can quickly eat into your savings. |
| Uncertain Political Climate | Planning bottlenecks and slow housing reforms make timing unpredictable. |
| Emotional Ties | Moving away from a long-held home can be emotionally distressing, especially if linked to bereavement or life change. |
Benefits of Downsizing.
- PossiblyL ower utility bills and maintenance costs
- Unlock cash/equity to fund your retirement or assist children
- Reduced physical and mental stress
- Ability to move closer to necessary service and loved ones
- Less clutter and more mental clarity in your space. This improves your quality of life.
Disadvantages of Downsizing
- There can be huge emotions resulting from leaving a beloved family home where you created a lot of memories. In the worst cases, some people never get offer the grief from downsizing.
- Possibly reduced space for visitors or belongings
- You could experience some difficulty finding the right property in a suitable location
- Not every move ends positively. So there is the potential of stressful logistics and potential regrets once you move into yur new home.
- If your new home is in a high-demand area, your expenses may not be significantly lower than if you stayed in your old home.
Property Types Suitable for Downsizing in Ireland
| Type | Description |
|---|---|
| Bungalows | – Ideal for easy mobility as there are no higher floors – Often scarce in urban centres |
| Apartments | – Very Practical for urban living – Lots of service charges and possible noise from neighbours due to thin walls |
| Modular Homes | – A lot quicker to build than traditional homes, without a sacrifice in quality – Still face planning & financing stigma in some counties |
| Retirement Villages | – They offer community and medical access. See more HERE. – Limited availability outside Dublin as seen HERE. |
| Tiny Homes | – Very limited support in any way in Ireland as a primary residence. You will find it very difficult to get approval for something like this unless you are a business. |
| Log Cabins/Garden Units | – May become more popular with families accommodating older parents on-site due to recent exemptions – Planning rules always apply |
Political and Market Considerations of Downsizing.
Downsizing in Ireland is entangled in wider housing and planning issues such as:
- Notorious Red Tape and Planning Delays – Despite modular housing innovations and a well-known need for more accodoation within Ireland, slow planning permission approval limits availability of homes available for downsizing.
- Under-Investment in Public Infrastructure – Water, Roads and electricity limitations in rural areas reduce the ability for new developments to be built. This point is more nuanced, but you can read up on this HERE.
- Inadequate Support Schemes – So far, we only able to find a very successful downsizing project by Cork Council. As far as we can tell, there are no direct government schemes incentivising or supporting downsizers in Ireland. This is quite surprising given the popularity of the Cork Council Rightsizing Scheme.
- State Focus on Perceived Housing Priorities – A lot of current housing policy focuses on new buyers and first-time homeowners, not downsizers.
A potential solution could be targeted downsizing grants, similar to this suggestion in the UK aimed at reducing Stamp Duty Relief for older movers. However, this is only a consideration and not a solution to the above.
Unfortunately, right now in Ireland, housing supply is so stretched that I highly doubt that this would be in the running anytime soon.
