40 Places Where Downsizing Your Home Pays Off Most in 2026
Whether you’re experiencing a job change, focusing on being retirement-ready or just wanting to stack up some savings, downsizing your home might be the financial ticket to get you there. How much money you save by moving into a smaller home can boil down to location, location, location.
So you don’t have to navigate the current economic landscape in this regard, MoneyLion has done some deep-diving research to find where you can save the most money across the country just based on real estate markets and cost of living alone. In many popular big cities and lesser-known areas, it’s more than just a little pocket change.
Find Out: 5 Major US Metros Where You Can Still Buy a Luxury Home Under $1M
Read Next: Start Growing Your Net Worth With Smarter Tracking
Key Findings
The top four cities in this ranking (Palm Beach, Florida; Aspen, Colorado; Beverly Hills, California; and Miami Beach, Florida) have average home values toppling over $10 million for houses with five bedrooms or more.
In nine of the cities listed, homeowners can save over $30,000 a month by downsizing alone.
Only 11 cities on this list have a livability score over 80, with a majority of those being in either California or Florida.
Get ready to potentially pack your (smaller and fewer) bags and consider these 40 places where downsizing pays off the most this year, ranked based on the annual amount of estimated savings.
1. Palm Beach, Florida
Median household income: $168,403
Average monthly cost of expenditures: $2,275
Monthly cost of living in a 5-bedroom home (or larger): $126,411
Monthly cost of living in a 2-bedroom home: $10,171
Annual savings by downsizing: $1,394,884
2. Aspen, Colorado
Median household income: $74,033
Average monthly cost of expenditures: $1,944
Monthly cost of living in a 5-bedroom home (or larger): $121,505
Monthly cost of living in a 2-bedroom home: $14,677
Annual savings by downsizing: $1,281,944
3. Beverly Hills, California
Median household income: $132,977
Average monthly cost of expenditures: $2,380
Monthly cost of living in a 5-bedroom home (or larger): $63,966
Monthly cost of living in a 2-bedroom home: $10,660
Annual savings by downsizing: $639,672
4. Miami Beach, Florida
Median household income: $72,856
Average monthly cost of expenditures: $2,265
Monthly cost of living in a 5-bedroom home (or larger): $45,556
Monthly cost of living in a 2-bedroom home: $6,440
Annual savings by downsizing: $469,387
5. Montecito, California
Median household income: $231,005
Average monthly cost of expenditures: $2,225
Monthly cost of living in a 5-bedroom home (or larger): $60,493
Monthly cost of living in a 2-bedroom home: $21,964
Annual savings by downsizing: $462,357
6. Malibu, California
Median household income: $194,421
Average monthly cost of expenditures: $2,498
Monthly cost of living in a 5-bedroom home (or larger): $49,479
Monthly cost of living in a 2-bedroom home: $11,800
Annual savings by downsizing: $452,148
7. Woodside, California
Median household income: $250,000+
Average monthly cost of expenditures: $2,505
Monthly cost of living in a 5-bedroom home (or larger): $47,177
Monthly cost of living in a 2-bedroom home: $13,359
Annual savings by downsizing: $405,813
8. Santa Monica, California
Median household income: $114,885
Average monthly cost of expenditures: $2,312
Monthly cost of living in a 5-bedroom home (or larger): $40,224
Monthly cost of living in a 2-bedroom home: $9,856
Annual savings by downsizing: $364,422
9. Jackson, Wyoming
Median household income: $118,991
Average monthly cost of expenditures: $2,213
Monthly cost of living in a 5-bedroom home (or larger): $38,975
Monthly cost of living in a 2-bedroom home: $8,839
Annual savings by downsizing: $361,627
10. North Palm Beach, Florida
Median household income: $90,049
Average monthly cost of expenditures: $2,206
Monthly cost of living in a 5-bedroom home (or larger): $34,334
Monthly cost of living in a 2-bedroom home: $4,579
Annual savings by downsizing: $357,055
11. Bay Harbor Islands, Florida
Median household income: $89,663
Average monthly cost of expenditures: $2,351
Monthly cost of living in a 5-bedroom home (or larger): $33,651
Monthly cost of living in a 2-bedroom home: $5,880
Annual savings by downsizing: $333,257
12. Newport Beach, California
Median household income: $156,867
Average monthly cost of expenditures: $2,148
Monthly cost of living in a 5-bedroom home (or larger): $41,113
Monthly cost of living in a 2-bedroom home: $13,415
Annual savings by downsizing: $332,374
13. Highland Park, Texas
Median household income: $250,000+
Average monthly cost of expenditures: $2,125
Monthly cost of living in a 5-bedroom home (or larger): $34,255
Monthly cost of living in a 2-bedroom home: $8,163
Annual savings by downsizing: $313,101
14. Nantucket, Massachusetts
Median household income: $148,017
Average monthly cost of expenditures: $2,185
Monthly cost of living in a 5-bedroom home (or larger): $38,563
Monthly cost of living in a 2-bedroom home: $12,658
Annual savings by downsizing: $310,867
15. Coral Gables, Florida
Median household income: $134,216
Average monthly cost of expenditures: $2,296
Monthly cost of living in a 5-bedroom home (or larger): $32,213
Monthly cost of living in a 2-bedroom home: $6,399
Annual savings by downsizing: $309,760
16. Key Biscayne, Florida
Median household income: $181,505
Average monthly cost of expenditures: $2,339
Monthly cost of living in a 5-bedroom home (or larger): $34,769
Monthly cost of living in a 2-bedroom home: $9,336
Annual savings by downsizing: $305,191
17. Saint Helena, California
Median household income: $148,750
Average monthly cost of expenditures: $2,282
Monthly cost of living in a 5-bedroom home (or larger): $34,070
Monthly cost of living in a 2-bedroom home: $8,753
Annual savings by downsizing: $303,800
18. Longboat Key, Florida
Median household income: $158,030
Average monthly cost of expenditures: $2,204
Monthly cost of living in a 5-bedroom home (or larger): $30,842
Monthly cost of living in a 2-bedroom home: $6,288
Annual savings by downsizing: $294,649
19. Laguna Beach, California
Median household income: $143,843
Average monthly cost of expenditures: $2,227
Monthly cost of living in a 5-bedroom home (or larger): $39,500
Monthly cost of living in a 2-bedroom home: $14,998
Annual savings by downsizing: $294,028
20. Menlo Park, California
Median household income: $210,025
Average monthly cost of expenditures: $2,479
Monthly cost of living in a 5-bedroom home (or larger): $36,466
Monthly cost of living in a 2-bedroom home: $12,175
Annual savings by downsizing: $291,496
21. Incline Village, Nevada
Median household income: $167,069
Average monthly cost of expenditures: $2,013
Monthly cost of living in a 5-bedroom home (or larger): $30,206
Monthly cost of living in a 2-bedroom home: $7,092
Annual savings by downsizing: $277,360
22. Tequesta, Florida
Median household income: $98,271
Average monthly cost of expenditures: $2,208
Monthly cost of living in a 5-bedroom home (or larger): $27,184
Monthly cost of living in a 2-bedroom home: $4,194
Annual savings by downsizing: $275,883
23. Sunny Isles Beach, Florida
Median household income: $61,921
Average monthly cost of expenditures: $2,325
Monthly cost of living in a 5-bedroom home (or larger): $28,339
Monthly cost of living in a 2-bedroom home: $5,672
Annual savings by downsizing: $272,001
24. Greenwich, Connecticut
Median household income: $134,914
Average monthly cost of expenditures: $2,583
Monthly cost of living in a 5-bedroom home (or larger): $30,906
Monthly cost of living in a 2-bedroom home: $8,543
Annual savings by downsizing: $268,354
25. Tiburon, California
Median household income: $232,969
Average monthly cost of expenditures: $2,400
Monthly cost of living in a 5-bedroom home (or larger): $32,434
Monthly cost of living in a 2-bedroom home: $11,323
Annual savings by downsizing: $253,327
26. Los Altos, California
Median household income: $250,000+
Average monthly cost of expenditures: $2,462
Monthly cost of living in a 5-bedroom home (or larger): $35,232
Monthly cost of living in a 2-bedroom home: $14,572
Annual savings by downsizing: $247,918
27. Pinecrest, Florida
Median household income: $206,417
Average monthly cost of expenditures: $2,355
Monthly cost of living in a 5-bedroom home (or larger): $24,809
Monthly cost of living in a 2-bedroom home: $4,165
Annual savings by downsizing: $247,725
28. Lighthouse Point, Florida
Median household income: $92,135
Average monthly cost of expenditures: $2,217
Monthly cost of living in a 5-bedroom home (or larger): $24,474
Monthly cost of living in a 2-bedroom home: $3,864
Annual savings by downsizing: $247,319
29. Saratoga, California
Median household income: $250,000+
Average monthly cost of expenditures: $2,503
Monthly cost of living in a 5-bedroom home (or larger): $30,525
Monthly cost of living in a 2-bedroom home: $10,018
Annual savings by downsizing: $246,091
30. Palo Alto, California
Median household income: $231,101
Average monthly cost of expenditures: $2,447
Monthly cost of living in a 5-bedroom home (or larger): $32,945
Monthly cost of living in a 2-bedroom home: $12,779
Annual savings by downsizing: $241,988
31. Kentfield, California
Median household income: $249,896
Average monthly cost of expenditures: $2,398
Monthly cost of living in a 5-bedroom home (or larger): $30,701
Monthly cost of living in a 2-bedroom home: $10,665
Annual savings by downsizing: $240,429
32. Los Altos Hills, California
Median household income: $250,000+
Average monthly cost of expenditures: $2,501
Monthly cost of living in a 5-bedroom home (or larger): $43,981
Monthly cost of living in a 2-bedroom home: $23,989
Annual savings by downsizing: $239,913
33. Key Largo, Florida
Median household income: $85,778
Average monthly cost of expenditures: $2,389
Monthly cost of living in a 5-bedroom home (or larger): $25,781
Monthly cost of living in a 2-bedroom home: $6,909
Annual savings by downsizing: $226,459
34. Hermosa Beach, California
Median household income: $166,442
Average monthly cost of expenditures: $2,382
Monthly cost of living in a 5-bedroom home (or larger): $30,215
Monthly cost of living in a 2-bedroom home: $11,653
Annual savings by downsizing: $222,735
35. Stanford, California
Median household income: $75,208
Average monthly cost of expenditures: $2,365
Monthly cost of living in a 5-bedroom home (or larger): $25,665
Monthly cost of living in a 2-bedroom home: $7,762
Annual savings by downsizing: $214,842
36. Park City, Utah
Median household income: $133,558
Average monthly cost of expenditures: $1,961
Monthly cost of living in a 5-bedroom home (or larger): $25,227
Monthly cost of living in a 2-bedroom home: $7,719
Annual savings by downsizing: $210,094
37. University Park, Texas
Median household income: $250,000+
Average monthly cost of expenditures: $2,134
Monthly cost of living in a 5-bedroom home (or larger): $24,096
Monthly cost of living in a 2-bedroom home: $6,662
Annual savings by downsizing: $209,202
38. Hailey, Idaho
Median household income: $90,760
Average monthly cost of expenditures: $1,898
Monthly cost of living in a 5-bedroom home (or larger): $22,378
Monthly cost of living in a 2-bedroom home: $4,958
Annual savings by downsizing: $209,037
39. Coronado, California
Median household income: $134,534
Average monthly cost of expenditures: $2,224
Monthly cost of living in a 5-bedroom home (or larger): $31,349
Monthly cost of living in a 2-bedroom home: $13,981
Annual savings by downsizing: $208,415
40. Sausalito, California
Median household income: $182,357
Average monthly cost of expenditures: $2,378
Monthly cost of living in a 5-bedroom home (or larger): $26,544
Monthly cost of living in a 2-bedroom home: $9,398
Annual savings by downsizing: $205,745
Methodology: For this study, MoneyLion analyzed home values across the United States to find the places where you would save the most by downsizing your home. Using the Zillow Home Value Index, the average values for a 5+ bedroom home and a 2 bedroom home were sourced. Assuming a 10% down payment and using the national average 30-year fixed mortgage rate of 6.66%, sourced from the Federal Reserve Economic Data on 8/3/26, the average mortgage was calculated for the 5+ bedroom home and the 2 bedroom home. Cities with at least a $10,000 drop in mortgage were identified and using the U.S. Census 5yr ACS, the total population, population aged 65 and over, total households, and median household income were sourced for each city. To qualify for this study, the city must have at least 5,000 total population. The cost of living indexes were sourced from Sperling's BestPlaces and using the average expenditure costs for all households as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure cost was calculated for each city. Using the average expenditure and mortgage costs, the total cost of living for each home size was calculated. The difference in cost of living was calculated and the cities were sorted to show the places with the most savings by downsizing. All data is up to date as of Aug. 4, 2026.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice. The research, writing and data analysis were handled by our editorial team. The formatting of the data alone was created with the assistance of artificial intelligence and reviewed by our editorial team for accuracy; however, AI-generated content may be inaccurate, incomplete, or outdated. You should independently verify important information through reliable sources before making any decisions based on this content.
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