10 Cities Where Downsizing Could Put Up to $850K in Your Pocket

Downsizing can sound like an easy way to free up money, but it doesn't pay off everywhere. A recent MovingPlace analysis found that after years of rising home prices, many homeowners would still come up short after selling a larger home and buying a smaller one in the same market.

To estimate where downsizing still pays off, the analysis modeled a homeowner who bought a family home in 2014 with a typical down payment and mortgage rate, made 12 years of payments, sold in 2026 at the current market value and then bought a two-bedroom home with the proceeds.

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Of more than 7,500 cities analyzed, only about 2,700 were projected to leave a typical downsizer with extra cash. In the markets at the top of the list, however, that surplus can be substantial.

Here are the 10 cities where downsizing pays off the most.

1. Pinecrest, Florida

• Cash surplus after downsizing: $851,014

2. Bay Harbor Islands, Florida

• Cash surplus after downsizing: $729,010

3. Seal Beach, California

• Cash surplus after downsizing: $605,597

4. Coral Gables, Florida

• Cash surplus after downsizing: $567,291

5. Lighthouse Point, Florida

• Cash surplus after downsizing: $544,096

6. University Park, Texas

• Cash surplus after downsizing: $542,641

7. Ojus, Florida

• Cash surplus after downsizing: $485,936

8. Campbell, California

• Cash surplus after downsizing: $452,372

9. Sunset, South Carolina

• Cash surplus after downsizing: $448,941

10. Bellevue, Washington

• Cash surplus after downsizing: $424,549

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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.

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